PEGASES PROPERTIES P. LTD.,MUMBAI vs. DY CIT - CC-2(3), MUMBAI

ITA 350/MUM/2021Status: DisposedITAT Mumbai23 December 2021AY 2016-1723 pages
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What did the Tribunal hold?

The Tribunal held that reassessment proceedings initiated under Section 147/148 were invalid as no substantive addition was made in any other hand. Consequently, the protective additions made by the AO were quashed.

What were the facts?

The assessee, a builder, treated unsold flats as stock-in-trade. The AO made additions on account of deemed rental income on these unsold flats, relying on High Court decisions. The CIT(A) upheld these additions.

What were the issues?

Whether deemed rental income on unsold stock-in-trade flats can be added when no substantive addition is made elsewhere, and the validity of reassessment proceedings initiated without substantive additions.

Which sections of the Income-tax Act were involved?

Section 153C,Section 143(3),Section 23,Section 147,Section 148,Section 69A,Section 271AAB,Section 271(1)(c)

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Cases cited in this judgment(8)Show list

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Income Tax Appellate Tribunal, ‘C‘ BENCH

Before: SHRI M.BALAGANESH & SHRI LALIET KUMAR

For Appellant: Shri Rajan Vora & Shri Nikhil Tiwari
For Respondent: Shri Rakesh Garg
Hearing: 01/12/2021Pronounced: 23/12

PER BENCH:

These appeals in ITA Nos.350/Mum/2021 to 352/Mum/2021 for A.Yrs.2016-17 to 2018-19 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-48, Mumbai in appeal No.CIT(A)-48/IT- 21/DCCC-2(3)/2019-20 dated 29/01/2021 (ld. CIT(A) in short) against the order of assessment passed u/s.153C r.w.s. 143(3) of the Income Tax

2 ITA Nos.350-352/Mum/2021 M/s. Pegasus Properties Pvt. Ltd., Act, 1961 (hereinafter referred to as Act) dated 26/01/2019 by the ld. Dy. Commissioner of Income Tax, Central Circle-2(3), Mumbai (hereinafter referred

The order continues below.

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