Capital Gains on Development Rights Taxable to Members, Not Society: ITAT Mumbai

ITO Vs RBI Employees Bhagvati Co-op. Housing Society Ltd. (ITAT Mumbai) Summary: The Mumbai ITAT dismissed Revenue’s appeals and upheld the CIT(A)’s order deleting the addition of ₹4.97 crore made as short-term capital gains in the hands of RBI Employees Bhagvati Co-operative Housing Society Ltd. The Assessing Officer had treated the transfer of development rights under a 2010 redevelopment agreement as a taxable transfer under Sections 2(47)(v) and 50C, but the CIT(A) held that the real owners of the property were the individual members, not the society, relying on CBDT Circular No. 9 o...