Udayachal Goregaon Co-operative Housing Society Ltd. vs. ITO Ward 41(4)(4), Mumbai

Parties Involved

Facts Summary

The assessee, Udayachal Goregaon Co-operative Housing Society Ltd., had not filed its return of income for the Assessment Year 2016-17. The case was flagged under the Risk Management Strategy of the CBDT based on information indicating a sale of immovable property for ₹71,29,000. Since no return was filed, proceedings under section 147 were initiated. The Assessing Officer proceeded on the premise that the assessee had sold an immovable property and had not offered the resultant capital gain to tax. However, the Assessing Officer did not have the necessary documents to substantiate the transaction. The assessee denied selling any property and provided additional evidence to support its contention. The learned CIT(A) confirmed the addition of ₹71,29,000 without examining the true nature of the instrument received from the Sub-Registrar.…

Legal Issues

• 1. Validity of the reopening and addition of ₹71,29,000 as short-term capital gain

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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