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Issues Involved:
The only issue raised in this appeal is against the computation of capital gains. Comprehensive Details: Issue: Computation of Capital Gains The appeal was against the order of CIT(A)-XX, Mumbai, related to the assessment year 2003-04 under section 143(3) read with section 148 of the Income-tax Act, 1961. The case involved a registered society consisting of 11 members, entitled to receive Transfer of Development Rights (TDR) from the Municipal Corporation of Mumbai. The TDR was assigned to a builder for repairing the building, and agreements were made between the society and the developer, as well as between individual flat owners and the developer. The Assessing Officer treated the consideration received by flat owners as income of the society. However, the CIT(A) held that no income accrued to the society from the assignment of TDRs and construction of additional floors. The Tribunal noted that the society was not the landowner, and individual flat owners had agreements with the developer for construction and repairs. Following precedent, it was held that the receipts from the assignment of TDRs were not taxable in the hands of the society. The Tribunal confirmed the CIT(A)'s decision, dismissing the appeal by the Revenue. In conclusion, the Tribunal ruled that the receipts arising from the assignment of TDRs were not taxable in the hands of the assessee society, as the society was not the landowner and individual flat owners had separate agreements with the developer for construction and repairs. The order of the Assessing Officer was found to lack merit, and the decision of the CIT(A) was upheld. Consequently, the appeal filed by the Revenue was dismissed.
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