INCOME TAX OFFICER-41(2)(4), MUMBAI, BKC, MUMBAI vs. RBI EMPLOYEES BHAGVATI COOP HOUSING SOCIETY LTD , MULUND EAST, MUMBAI

ITA 4073/MUM/2025Status: DisposedITAT Mumbai27 October 2025Bench: SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision, agreeing that the income from the development agreement was not taxable in the hands of the society but rather in the hands of its individual members. Consequently, the penalty levied was also deleted.

What were the facts?

The assessee, a co-operative housing society, entered into a development agreement for which the Assessing Officer made a substantial addition as short-term capital gains. The CIT(A) deleted this addition, holding that the income was taxable in the hands of individual members, not the society.

What were the issues?

Whether income from a development agreement for a co-operative housing society is taxable in the hands of the society or its individual members. Whether penalty under Section 271(1)(c) is sustainable when the primary addition is deleted.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 271(1)(c),Section 2(47)(v),Section 50C

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

Heard together (2 matters)

ITA No.4073/MUM/2025
ITA No.3595/Mum/2025

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[ Per Rahul Chaudhary

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