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IN THE INCOME TAX APPELLATE TRIBUNAL “K (SMC)” BENCH, MUMBAI

BEFORE MS. KAVITHA RAJAGOPAL, JM

AND

SHRI PRABHASH SHANKAR, AM

ITA No.6455/Mum/2025

(Assessment Year: 2009-10)

Mr. Zarir Rustom Joshi, Income Tax Officer,

26, Heera Meher, 108, Ward -17(3)(5)

Wood House Road, Colaba, Room No.116, 1^st Floor,

Vs.

Mumbai – 400 005 Aayakar Bhavan,

Maharshi Karve Road,

Mumbai – 400 020

PAN:AAHPJ9575G

(Appellant) : (Respondent

Assessee by : Shri Dinesh Kukreja, Adv.

Respondent by : Shri Bhagirath Ramawat, Sr. DR

Date of Hearing : 02.12.2025

Date of Pronouncement : 04.02.2026

O R D E R

Per Kavitha Rajagopal, JM:

This appeal has been filed by the assessee, challenging the order of the Learned

Commissioner of Income Tax (Appeals) [‘Ld. CIT(A)’ for short] passed u/s. 250 of the

Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short)

2009-10.

2. The assessee has raised the following grounds of appeal:

“1. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming

the action of the Ld. AO that the transfer of an immovable property takes place only on

execution of conveyance deed and not before that, under the Act.

ITA No.6455/Mum/2025

Mr. Zarir Rustom Joshi

2. On the facts and circumstances of the case and in law, the Ld. AO and Ld. CIT(A) have

erred in holding that pursuant to the development agreement only license was given, and

possession of immovable property was not transferred.

3. On the facts and circumstances of the case and in law, the Ld. AO and Ld. CIT(A) have

erred in holding that the execution of development agreement on 08.03.2000 does not

amount to transfer as per Section 2(47)(v) of the Income-tax Act, 1961 ("Act") since the

pre-requisites of section 53A of the Transfer of Property Act, 1882 are not fulfilled.

4. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming

the action of the Ld. AO in holding that since the name of the Appellant was appearing in

the "7/12 Extract" in the year 2008, he was the co-owner of the land.

5. On the facts and circumstances of the case and in law, the Ld. AO and Ed. CIT(A) erred

in not deducting Rs.1 crore paid to Homi Jal Chibber on the alleged ground that this

payment was not contemplated in the development agreement.

6. On the facts and circumstances of the case and in law, the Ld. AO and Ld. CIT(A) erred

in not deducting Rs.86,00,000 paid to hutment dwellers, and Rs.22,00,000 paid to vendors

in AY 2000-01, on the alleged ground that there was no legally acceptable proof of such

payments.

7. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming

the action of the Ld. AO in reopening the assessment of the Appellant u/s. 147 of the Act.

8. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming

the action of the Ld. AO in reopening the assessment of the Appellant without appreciating

that the gains earned on the transfer of immovable property were already offered to tax

in AY 2000-01 and an exemption claimed u/s 54EA of the Act.

9. The Appellant therefore prays that the reopening of assessment be held as bad in law

and also, the transfer of the subject immovable property be held to have taken place in

the AY 2000-01 pursuant to the development agreement entered into on 08.03.2000 and

accordingly, the findings of the Ld. CIT(A) and Ld. AO be held as bad in law and be reversed

accordingly.

The Appellant craves leave to, add to or alter, by deletion, substitution, or otherwise, any

or all of the foregoing grounds of appeal at or before the hearing, and to submit such

statements, documents, and papers as may be considered necessary either at or before

the appeal hearing.”

3. Brief facts of the case are that the assessee is an individual and had not filed his

return of income for the year under consideration. The assessee’s case was reopened based

2

ITA No.6455/Mum/2025

Mr. Zarir Rustom Joshi

on the information received from ITO, Ward-2(1), Aurangabad that the asse