ACIT CIRCLE 20 1 MUMBAI, MUMBAI vs. DIAMOND DEVELOPERS, MUMBAI

ITA 2105/MUM/2026Status: DisposedITAT Mumbai13 August 2026AY 2016-1713 pages
AI SummaryDismissed

What were the facts?

The assessee, a property developer, sold a property and offered the income as Long Term Capital Gains (LTCG) in its original assessment. The assessment was reopened based on an audit objection, suggesting the income should be treated as business income.

What did the Tribunal hold?

The Tribunal held that the reassessment proceedings were invalid as they were based on the same material available during the original assessment, constituting a mere change of opinion. Therefore, the addition made on merits became academic.

What were the issues?

Whether reopening of assessment based on existing material amounts to a change of opinion, and if so, whether the reassessment proceedings are valid.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 143(3),Section 45,Section 28(i)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI

Before: SHRI OM PRAKASH KANT & SHRI ANIKESH BANERJEE

PER SHRI ANIKESH BANERJEE, JUDICIAL MEMBER:

The instant appeal of the revenue filed against the order of NFAC Delhi [for brevity “Ld. CIT(A)”], order passed under Section 250 of the Income Tax Act, 1961 (for brevity ‘the Act’), date of order 15.12.2025 for Assessment Year 2016-17. The impugned order emanated from the order of the Assessment Unit

ITA 2105/MUM/2026 DIAMOND DEVELOPERS

Income Tax Department, o

The order continues below.

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