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2024 (2) TMI 932 - BOMBAY HIGH COURTAssessment of housing society - consideration received on the transaction carried out for redevelopment of the land (LTCG) taxation in the hands of the society or not? - HELD THAT:- As decided in Raj Ratan Palace Co-operative Housing Society [2011 (2) TMI 96 - ITAT MUMBAI] Society was only the lessee and what was transferred to the developer is development rights not land or building Section 50C of the Act stipulates as where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both. No authority is required to hold that terms ‘land or building' ‘or both' do not include development rights and that in the case before there was transfer of such rights only. Thus we hold that FAA was not justified in taxing sum in the hands of the assessee, as same was the income of the members of the society. We should also note that against the order of this Court [2013 (2) TMI 933 - BOMBAY HIGH COURT] in Raj Ratan Palace CHS (supra), Revenue had preferred a Special Leave Petition in the Apex Court, which came to be dismissed on 28th October 2013 [2013 (10) TMI 1579 - SC ORDER]. This will take care of Questions 1 and 3 proposed in the appeal. Nature of receipt - Corpus fund taxability in the year of receipt - as submitted assessee is following mercantile system of accounting - CIT(A) held that on Rs. 3.50 Crores which was taxable under the head ‘income from other sources’ only could be taxed for the year under consideration - ITAT after hearing the parties came to a conclusion that in view of the fact that assessee had not given possession of the land to the Developer during the year under consideration, the money received by assessee during the year was to be assessed under the head ‘capital gains’ - HELD THAT:- We are unable to find any error in the conclusion arrived at by the ITAT. No substantial questions of law arise.
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