Crescent Steels Vs Assessment Unit Income Tax Department (ITAT Mumbai)
The Income Tax Appellate Tribunal, Mumbai, considered the assessee’s appeal against the order of the National Faceless Appeal Centre dated 17.10.2025 arising from a reassessment order passed under Sections 147 read with 144B of the Income-tax Act, 1961 for Assessment Year 2016-17. The principal dispute concerned the addition of ₹47,67,310 as long-term capital gain on sale of immovable property at Bhiwandi.
The Assessing Officer found that during the relevant year the assessee had sold immovable property for ₹58,20,500 and initiated reassessment proceedings under Section 147. During the assessment, it emerged that the assessee had transferred its business undertaking as a going concern by way of a slump sale on 14.07.2012 to a newly constituted partnership firm, M/s. Crescent Steels (New), for a total consideration of ₹4.15 crore. According to the assessee, the Bhiwandi land formed part of the assets transferred under the slump sale, the slump sale consideration had been offered to tax in Assessment Year 2013-14, and the registered sale deed executed on 20.10.2015 was only to complete the transfer owing to technical reasons. To avoid double taxation, the assessee did not offer capital gains again in Assessment Year 2016-17. The Assessing Officer rejected this explanation and treated the entire ₹58,20,500 as taxable long-term capital gain. The Commissioner (Appeals) upheld the addition but directed that the cost of acquisition be allowed while computing the capital gain.
