THE VITHALNAGAR CO-OPERATIVE HOUSING SOCIETY LTD,MUMBAI vs. INCOME TAX OFFICER - 34 (3) (5), MUMBAI, MUMBAI

PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assesseeis directed against the separate orders of ld. CIT(A) / NFAC dated 27.02.2026 for Assessment Year (AY) 2004-05. The assessee has raised following grounds of appeal: “1. Learned CIT(Appeals) erred in dismissing the appeal of the assessee on the grounds of delay in filing appeal. 2. The Learned CIT(Appeals) erred in not allowing the assessee to show cause against the purported delay or in the alternative to seek condonation of delay. 3. The Learned CIT(Appeals) erred in not holding the assessment order passed without report of the DVO, as invalid and bad in law. 4. The Learned CIT(Appeals) erred in confirming the Order of the Assessing Officer taking the valuation as per the stamp duty authority u/s.50C of the

The Vithalnagar Co-Operative Housing Society Ltd. ITA No. 2847/M/2026 (AY: 2004-05) Act, as the sales consideration in computing long term capital gain in respect of the sale of common plot. 5.The learned Assessing Officer erred in not taking the Fair Market Value of the Plot as on the date of the Memorandum of Agreement (25.1.2000) as the consideration accruing, for computation of Capital Gains. 6. The above stated grounds of Appeal are in the alternative and without Prejudice to each other and the appellant craves leave to add, alter or modify the grounds of appeal and submit a detailed statement of facts, written submissions and case law relied upon at the time of the hearing. 2. Rival submissions of both the parties have been heard and record perused. The learned Authorised Representative (learned AR) of the assessee submits that the assessment was completed under section 143(3), read with section 263, on 09.03.2015. The assessment was completed in pursuance of the direction of the Principal Commissioner of Income Tax (PCIT) dated 03.03.2014. The Assessing Officer (AO), while passing the assessment order, made an addition under section 50C of Rs. 1.18 crore. The Assessing Officer made such addition on the basis of his observation that the assessee, along with 13 other cooperative societies in Juhu Vile Parle Development (JVPD) Scheme, sold land admeasuring 6567.6 square metres to a Maharashtra Cadre Indian Police Service (IPS) Officer. The sale consideration as per the agreement dated 14.05.2003 was only Rs. 77,14,920/-, whereas, as per the value determined by the Stamp Valuation Authority, the value of the said plot was Rs. 11.88 crore. The AO, in terms of the direction under the order passed under section 263 dated 03.03.2014, invoked the provisions of section 50C and made an addition of

The Vithalnagar Co-Operative Housing Society Ltd. ITA No. 2847/M/2026 (AY: 2004-05) one-tenth of the total value determined by the Stamp Valuation Authority in the hands of the assessee. One-tenth share was added in the hands of the assessee as the assessee was having ownership to that extent. The copy of assessment order was not served on the assessee. The assessee visited the officer of AO and obtained certified copy of the assessment order on 29.09.2015. On receipt of copy of assessment order, the assessee filed appeal before ld CIT(A). In Form-35 [appeal for before CIT(A)] the assessee specifically stated that assessment order was received on 20.09.2026. In fact, there was no delay in filing appeal before CIT(A) from the date of receipt of assessment order. The assessee filed an appeal before the learned CIT(A) on 17.10.2015. The appeal of the assessee was dismissed as unadmitted on the ground that there was a delay of 202 days in filing the appeal before him. The delay was not condoned. Resultantly, the appeal was dismissed as unadmitted and without discussing the merits of the case. No specific show cause notice was issued by ld CIT(A) before dismissal of appeal on delay. The learned AR of the assessee submits that the office bearer of the appellant society is an honorary member and is working to protect the interests of the members of the assessee society. There is no intentional or deliberate delay in filing the appeal belatedly as order itself was not served on them. 3. On merits, the ld learned AR of the assessee submits that, in fact, the ground of appeal raised by the assessee is covered in favour of the

The Vithalnagar Co-Operative Housing Society Ltd. ITA No. 2847/M/2026 (AY: 2004-05) assessee by various decisions of the Tribunal in other societies which were having common shareholding in the plot sold by the assessee along with other such cooperative societies, including in the case of Navyug Cooperative Housing Society Limited vs. DCIT in ITA No. 2811/Mum/2025, dated 23.03.2026, and in Jai Hind Cooperative Housing Society Limited vs. ACIT in ITA No. 1180/Mum/2025, dated 20.04.2026. The learned AR of the assessee, in all fairness, submits that as the learned CIT(A) has not adjudicated the various grounds of appeal raised in the first appeal, therefore, the delay may be condoned and the matter may be adjudicated by the Tribunal. In alternative it was argued that matter may restored back to the file of the learned CIT(A) with the direction to adjudicate the issue after considering the decision of the Tribunal in Navyug Cooperative Housing Society Limited vs. DCIT (supra). 4. On the other hand, the learned Senior Departmental Representative (ld. Sr. DR) for the Revenue submits that, in case this Bench is of the view that the delay is to be condoned, the matter may be restored back to the file of the learned CIT(A) to adjudicate the issue on merits. Since the learned CIT(A) has not considered the merits, the assessee may take all factual and legal objections before the learned CIT(A). 5. We have considered the rival submissions of both the parties and have gone through the orders of the lower authorities carefully. We find that the dispute relating to the housing societies in JVPD Scheme has been a matter

The Vithalnagar Co-Operative Housing Society Ltd. ITA No. 2847/M/2026 (AY: 2004-05) of dispute in a number of litigations, either under Section 263 or in regular assessment. In one of the appeals in the case of Navyug Cooperative Housing Society Ltd. (supra), one of us, has taken a consistent decision that the provisions of Section 50C are not applicable on the peculiar facts of the case, qua the transfer of the plot which was jointly owned by 14 cooperative societies and was transferred to IPS officers of the Maharashtra Cadre. The said plot was reserved for police quarters and was under the control of the Public Works Department (PWD) since the development of the area from 1975. 6. However, we find that the appeal of the assessee was not considered by the learned CIT(A) on merits as the delay was not condoned. Considering the facts explained before us that copy of assessment order was received by officer bearer of assessee only on 29.092.2015 and appeal was filed 27.10.2015, there was no delay in filing appeal. Such fact is recorded on page-3 of impugned order by ld CIT(A). We find that despite recording such facts, the ld CIT(A) neither verified such facts nor allowed opportunity to the assessee to substantiate such contention. Hence, the technical delay, if any in filing the appeal before the learned CIT(A) is condoned. Further considering the facts that ld CIT(A) has not adjudicated various grounds of appeal on merit, hence, the matter is restored back to the file of the learned CIT(A) to adjudicate the various grounds of appeal on merits. Needless to say, before passing the order afresh, the learned

The Vithalnagar Co-Operative Housing Society Ltd. ITA No. 2847/M/2026 (AY: 2004-05) CIT(A) shall allow a fair and reasonable opportunity to the assessee. We further find that the case relates to AY 2004-05, therefore, the learned CIT(A) is expected to adjudicate the matter on priority preferably within six months from receipt of this order. The assessee is also directed to be more vigilant in future in making timely compliance. With the aforesaid discussion, the appeal of the assessee is allowed for statistical purposes. 7. In the result appeal of the assessee is allowed for statistical purpose. Order was pronounced in the open Court on 16/09/2026. /- /- Sd/- /- Sd/-SSSd/- Sd/- VIKRAM SINGH YADAV PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated: 16/09/2026 Biswajit Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai; and (5) Guard file. By Order

Assistant Registrar ITAT, Mumbai