Ghatkopar Devang Co-Operative Housing Society Limited Vs ITO (ITAT Mumbai)
Stamp-Duty Value of Redevelopment Agreement Is Not Automatically Society’s Income: ₹17.38 Crore Addition Restored for Fresh Appellate Consideration
The Mumbai Bench of the ITAT has restored the quantum and penalty appeals of a co-operative housing society involving an addition of ₹17.38 crore, which arose because the stamp-duty value of a redevelopment agreement was reported against the society’s PAN and treated by the AO as sale consideration.
The Tribunal found that the society had placed on record material indicating that it was merely a party to a redevelopment arrangement and had not received the disputed sum. In the interest of substantial justice, the ITAT directed the CIT(A) to reconsider the society’s request for condonation of delay. The connected penalty appeal u/s 270A was also restored for fresh adjudication after disposal of the quantum appeal.
Redevelopment Agreement Mistaken for Property Sale
Ghatkopar Devang Co-operative Housing Society Ltd. filed its return for AY 2023-24 declaring income of only ₹2,51,390. The case was selected for scrutiny through CASS because information relating to a property transaction of ₹17,38,15,500 appeared against the society.
During assessment, the society did not furnish an effective explanation or supporting documents. Its response was confined to an unclear one-line submission broadly stating that, according to it, there was no demand and the proceedings should be closed.
