PADMA PLASTIC,MUMBAI vs. COMMISSIONER OF INCOME TAX CIRCLE 22(1), MUMBAI

ITA 8866/MUM/2025Status: DisposedITAT Mumbai02 June 2026AY 2017-201815 pages
AI SummaryRemanded

What were the facts?

The assessee sold two industrial units for Rs. 4.42 crores. The Assessing Officer treated the entire sale consideration as long-term capital gain, disallowing indexed cost of acquisition and transfer premium paid to MIDC. The CIT(A) upheld this assessment.

What did the Tribunal hold?

The Tribunal held that the authorities below erred in rejecting the valuation reports and the claim for transfer premium without proper verification. The matter was restored to the Assessing Officer for recomputation.

What were the issues?

Whether the assessee is entitled to claim indexed cost of acquisition based on fair market value as on 01.04.2001, and whether the transfer premium paid to MIDC is allowable as a deduction while computing capital gains.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3),Section 144B,Section 55(2)(b),Section 48,Section 234A,Section 234B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH

For Appellant: Shri Dalpat Shah, CA
For Respondent: Shri Virabhadra S Mahajan
Hearing: 12/03/2026Pronounced: 02/06/2026

PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against the impugned order passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the Assessment Year 2017-18 arising out of the assessment framed under section 147 read with sections 143(3) and 144B of the Income Tax Act, 1961. 2 Padma Plastic

2.

The assessee is principally aggrieved by the action of the authorities below in assessing the entire sale consideration of Rs.4.42 crores received on transfer of two industrial units as long-term capital gain without granting indexed cost of acquisition by adopting fair market value as on 01.04.2001 and further in not allowing transfer premium paid

The order continues below.

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