STARSHINE LAND DEVELOPERS PRIVATE LIMITED,ANDHERI EAST, MUMBAI vs. PRINCIPAL COMMISSIONER OF INCOME TAX, MUMBAI-5, AAYAKAR BHAVAN, MUMBAI

ITA 2148/MUM/2024Status: DisposedITAT Mumbai27 February 2026AY 2015-16Bench: SHRI SAKTIJIT DEY (Vice President), SHRI JAGADISH (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Assessing Officer (AO) failed to examine the issue for which the case was reopened, specifically the taxability of notional ALV on unsold flats. The reassessment order was a mechanical narration of procedural steps without any discussion or analysis of the core issue, rendering it erroneous and prejudicial to the revenue.

What were the facts?

The assessee, engaged in the business of builders and developers, filed a return showing a loss. The assessment was later reopened based on a High Court judgment regarding unsold inventory and the potential for house property income on such inventory. A notice under section 148 was issued, followed by a reassessment order which accepted the returned loss without addressing the reopening issue.

What were the issues?

Whether the reassessment order passed by the AO was erroneous and prejudicial to the interest of revenue due to a failure to examine the issue for which the case was reopened, specifically the taxability of notional ALV on unsold flats.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 148,Section 142(1),Section 143(3)/147,Section 144B,Section 23(5)

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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY & SHRI JAGADISH

For Appellant: Shri Vipul Joshi & Ms. Dinkle Hariya
For Respondent: Shri Arun Kanti Dutta – CIT DR
Hearing: 22.01.2026Pronounced: 27.02.2026

Per: SHRI JAGADISH, A.M.:

1.

This appeal filed by the assessee is directed against the order of the Ld. Principal Commissioner of Income Tax-5, Mumbai passed u/s 263 of the Income-tax Act, 1961 dated 18.03.2024 for the assessment year 2015-16. Starshine Land Developers Private Limited

2.

The brief facts are that the assessee is in the business of builders and developers and filled return of income on 29.11.2015, showing loss of Rs.5,91,33,210/-. The assessment was completed u/s 143(3) on 23.12.2017 accepting the returned loss. Subsequently the assessment was reopened in view of

The order continues below.

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