{"id":64598,"date":"2026-09-23T07:23:12","date_gmt":"2026-09-23T01:53:12","guid":{"rendered":"https:\/\/itatonline.org\/digest\/hardinge-house-co-op-hsg-soc-ltd-v-ito-mum-trib-www-itatonline-org\/"},"modified":"2026-09-23T07:23:12","modified_gmt":"2026-09-23T01:53:12","slug":"hardinge-house-co-op-hsg-soc-ltd-v-ito-mum-trib-www-itatonline-org","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/hardinge-house-co-op-hsg-soc-ltd-v-ito-mum-trib-www-itatonline-org\/","title":{"rendered":"Hardinge House Co Op Hsg Soc. Ltd. v. ITO (Mum.)(Trib.) [www.itatonline.org]"},"content":{"rendered":"<div>\n<p>The assessee, a co-operative housing society consisting of 14 members, entered into a Development Agreement dated 04-07-2015 with the developer for redevelopment of its building. The Assessing Officer, on the basis of Annual Information Return, noticed immovable property transactions aggregating to \u20b918.40 crore registered under the PAN of the society and treated the entire amount as long-term capital gains in the hands of the society. The assessee contended that the Development Agreement merely granted development rights to the developer, that the society continued to be the owner of the land and that no consideration was received by the society. The developer had entered into Permanent Alternate Accommodation Agreements with the individual members, while the society was only a confirming party. The Tribunal, on examination of the Development Agreement, particularly clause 28, noted that the society represented its members and that the schedules to the agreement contained details of the individual members, their existing premises and the hardship and displacement compensation payable to them. It also noted that the society had not received any part of the sale consideration in its bank account and that the Development Agreement was executed in its representative capacity pursuant to the directives issued by the Government of Maharashtra under section 79A of the Maharashtra Co-operative Societies Act, 1960. The Tribunal held that direct tax liability arising from the underlying transaction could not be transferred or foisted upon another entity and, where the rights in the flats belonged to the individual members, the taxability of capital gains arising from redevelopment, if any, would arise in the hands of the individual members and not in the hands of the society. The addition of \u20b918.40 crore made in the hands of the society was accordingly deleted, and the appeal was allowed. <strong data-start=\"2543\" data-end=\"2599\">(AY. 2016-17) (ITA No. 3050\/Mum\/2026 dt. 31-08-2026)<\/strong><b><\/b><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>S.45: Capital gains \u2013 Co-operative housing society \u2013 Redevelopment of property \u2013 Development Agreement entered into by society on behalf of its members \u2013 Society continued to be owner of land \u2013 No consideration received by society \u2013 Developer entered into Permanent Alternate Accommodation Agreements with individual members \u2013 Society merely acted as representative of members \u2013 Capital gains arising from redevelopment transaction, if any, taxable in hands of individual members and not in hands of society \u2013 Addition made in hands of society deleted. [ S.2(47), 143(3), Maharashtra Co-operative Societies Act, 1960, S.79A .]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-64598","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gNU","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64598","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=64598"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64598\/revisions"}],"predecessor-version":[{"id":64599,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64598\/revisions\/64599"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=64598"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=64598"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=64598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}