TMI Blog2010 (11) TMI 1045X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment year 2004-05. The assessee is a co-operative society managing the common affairs of 14 societies situated at Juhu Vile Parle Development Scheme. It filed a return of income for the year ended 31.03.2004 showing income from property, business and other sources. The total income shown was ₹ 115/- only. The return was accompanied by internal audit report indicating various heads of income and expenditure. 3. While completing the assessment under section 143(3) of the Income Tax Act, the Assessing Officer noticed that the object of the society was to take possession of the common properties from the managing committee of the 14 co-operative societies under JVPD scheme and to hold them and settle the terms of the disposa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onveyance executed by the Bombay Housing Board. The original deed of conveyance was executed in April, 1990 in favour of the 14 co-operative housing societies who jointly owned them. For transfer of the plot to the Vasundhara Co-operative Housing Society Ltd. during the relevant previous year a sum of ₹ 74,17,895/- was realised by the assessee. The Assessing Officer considered that the aforesaid amount represented capital gains in the assessee s hands. The assessee pointed out that the amount was received for and on behalf of the 14 members societies which fact was clearly mentioned in the conveyance deed that the amount was received for the use, for the welfare of the JVPD scheme and the amounts stood in the balance sheet and was sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -operative Housing Society and finally conveyance deed was executed on 14.05.2003. On these facts, he held that the Assessing Officer was right in considering the net sale proceeds of ₹ 74,17,895/- for the purpose of working out the capital gains, but held that if the 1.4.1981 value was adopted as the cost of acquisition in terms of section 48, and indexation benefit is also allowed, there would be net capital loss of ₹ 57,65,385/-. In this view of the matter, he deleted the addition of capital gains on protective basis in the assessment of the assessee. 5. The revenue is in appeal to contend that the assessee is practically the owner of the plot and since the monies are still lying with it, not having been handed over to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es in the property and their liability to pay the cost of development of the property is also mentioned in the byelaws. There is no document to which our attention was drawn on behalf of the department transferring the ownership of the plot to the assessee society. The finding of the CIT(A) which is not challenged before us is that the conveyance deed was executed by the 14 societies members on 14.5.2003 in favour of Vasundhara Co-operative Housing Society Ltd. formed by the Maharashtra Cadre of IPS. Earlier to this conveyance, there was a memorandum of understanding entered into between these parties on 26.1.2000, a copy of which is at pages 75 to 104 of the paper book. A perusal of the memorandum of understanding shows that it was execute ..... X X X X Extracts X X X X X X X X Extracts X X X X
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