Redevelopment gains can’t be taxed in hands of CHS, rules Mumbai ITAT
The Mumbai ITAT has annulled a contentious Rs 18.4 crore tax addition for a housing society, stating the society served merely as a representative for its flat owners. The tribunal observed that the transactions reported under the society's PAN weren't its own revenues, given that no sale proceeds appeared in its bank account. This decision will benefit housing societies engaged in redevelopment projects. The Mumbai ITAT has annulled a contentious Rs 18.4 crore tax addition for a housing society, stating the society served merely as a representative for its flat owners. The tribunal observed that the transactions reported under the society’s PAN weren’t its own revenues, given that no sale proceeds appeared in its bank account. This decision will benefit housing societies engaged in redevelopment projects.
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