SBI STAFF CHITRALEKHA CHS LTD,MUMBAI vs. CIT-40, MUMBAI

O R D E R

PER AMARJIT SINGH, JM:

1. On the facts and circumstances of the case and in law, the Ld. AO has erred in adding Rs.3,07,86,423/- as STCG and has wrongly treated the said amount as taxable capital gain. The AO A.Y. 2015-16 has remarked that the appellant society has violated provisions of Section 50C but the observations are factually wrong.

2. The appellant craves leave to (i) add any new ground of appeal and/or (ii) amend, alter or delete any of the above grounds of appeal.”

3. The brief facts of the case are that the assessee filed its return of income on 16.03.2017 declaring total income to the tune of Rs.3,24,050/-. The case was selected for scrutiny under CASS. Notices u/s 143(2) & 142(1) of the Act were issued and served upon the assessee. The assessee is a Co-operative Housing Society & Derives its income from interest income and income from other sources. The case was selected for limited scrutiny for verification of sale consideration in ITR which was less than sale consideration written in AIR. Necessary details were called. On perusal of the registered sale-deed it was observed that the assessee has received the consideration of Rs.3,18,54,500/- on transfer of development rights to the developers. The stamp duty was also paid for the consideration of fair market value of Rs.3,19,64,000/-. The assessee has given the developing right to the housing society. The AO observed that the assessee has violated the provisions of Section 50C of the I. T. Act, 1961, therefore, notice was given and after the reply of the assessee short term capital gain in sum of Rs.3,07,86,423/- was assessed as income of the assessee. Feeling aggrieved, the assessee filed an appeal before the CIT(A) who partly allowed the claim of the assessee but declined the claim of the assessee on the ground mentioned above, therefore, the assessee has filed the present appeal before us.