TaxTMI 
TaxTMI 
2026 (9) TMI 703
X X X X Extracts X X X X
X X X X Extracts X X X X
....essment order by Income Tax Officer, Ward - 19(1)(5), Mumbai u/s. 143(3) of the Income-tax Act, 1961 ('the Act') dated 28.12.2018 for Assessment Year 2016-17. 2. The sole issue raised by the assessee in its grounds of appeal relates to the addition of Rs. 18,40,18,300/- made on account of long-term capital gains in the hands of the assessee-society, arising out of transactions reported in the Annual Information Return (AIR) in connection with a redevelopment agreement executed by the society on behalf of its members. 3. Briefly stated, the facts are that the assessee is a cooperative housing society consisting of 14 members. Assessee filed its return of income on 26.07.2016 reporting the total income at Rs. 91,000/-. The case was sele....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y members for providing alternate accommodation in the redeveloped building in lieu of existing premises and the same were also registered. In these agreements society is only a confirming party. Relevant Clause no. 2 of the DA reads as under: "The society and its members have unanimously appointed the developer to redevelop the said property and the said society has granted only development rights and no other rights to the said developer and the society has followed the guidelines laid down in law and have passed all the necessary resolutions as required in law" 4.1. Developer also entered into a permanent alternate accommodation agreement with the members of the assessee society. It is a party to the said agreements. Details ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ved from AIR which reflects the details of DA. Case of the assessee is that even after entering into the DA, the assessee society continues to be the owner of the land/plot and there is no sale/transfer of the land/plot. What has been given to the developers is only the development rights for the purpose of redevelopment of the old building. No sale consideration has been received by the assessee society. To substantiate this fact, copy of bank statements were furnished by the assessee society. 5. We have heard the rival contentions and perused the material available on record. Before we delve into the issue, specific reference is made to Clause 28 of the DA which mentions that Society represents all its members in this agreement. Also, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e developer, since its members decided to go for redevelopment of their building. The developer also entered into permanent alternate accommodation agreements with the members of the assessee society. It is also a fact on record that the assessee society did not receive any part of sale consideration into its bank account. Ld. AO has merely placed reliance on the AIR information wherein the sale transactions were reported, and thus he took the same as sales made by the assessee society. 5.3. In the given set of facts as stated above, the moot point for consideration is whether the capital gains, if any, arising out of the redevelopment transaction can be taxed in the hands of the cooperative housing society or in the hands of its individ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....said transaction in the hands of the assessee society. The addition so made is deleted. Grounds raised by the assessee in this regard are allowed. 6. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 31st August, 2026. ============= Document 1 109/29) SCHEDULE -!! 2084 DETAILS OF EXISTING MEMBERS AND THE UNITS AND AREA HELD BY THEM IN THE EXISTING BUILDING KNOWN AS "HARDINGE HOUSE" Sr. No. FLOOR FLAT/SHOP NO Name of Member carpet area (In Sq.ft) Shares held with Member 1 GROUND Shop No. I BALDEV M GUPTA 419.76 10 2 GROUND Shop No. 2 Dr. JAMSHED ADI LALKAKA & Dr.NAVROZE ADI LALKAKA 460.69 10 3 : GROUND Shop No. 3 KUTUB B. DHARIWALA & BATUL KUTUB DHARIWALA 429.48 10 4 GROUND Shop N....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... A SHAH & MRS RINA A SHAH FLAT NO. SA 6 56 1495860/- 1717470/- 10 MR RAJENDRA K SAVANI & MRS MEENA R SAVANI MR RASHMIKANT K SAVAN! & MRS ARNIKA R SAVANI FLAT NO. 6A & 68 1373649/- 2160687/- 11 ROMIL D. PARIKH & NISHA.R.PARIKH FLAT NO. 74 1405239/- 12 NILESHKUMAR RASIKLAL SHAH & DIMPLE NILESHKUMAR SHAH FLAT NO. 78 2178611/- 13 UTTAMBHAI P SHAH FLAT. NO, SA 14 DILIPKUMAR HARILAL SHAH, PARESH HARILAL CHOR PLAT NO. 89 W634365/ -- Secretscy SCHEDULE VI DETAIL OF RESERVED PREMISES Flat No. 1304 on 13th floor having carpet area 1000 sq ft FOR HARDINS HOUSE CO-OP HSG. SOCIETY LTD. SECRETARY THEANSWER For SAMBHAVPASSATA DEVLAGFERS PVT W Dir Document 3 SCHEDULE-IV DETAILS OF MONTHLY DISPLACEMENT COMPENSATION PAYABLE BY 2084....