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46. ITA No. 1672/Mum./2026
Rajesh Shamji Furia v. ITO
A.Y.: 2018-19 Date of Order: 16.07.2026
Sections: 2(42A), 45, 54, 54F
A redevelopment scheme does not result in extinguishment of the owner's proprietary rights followed by acquisition of an altogether fresh capital asset. The ownership rights of an existing member continue throughout the redevelopment process and merely undergo substitution from the old structure to the newly constructed premises.
FACTS
The assessee, jointly with his wife, had acquired the original residential flat measuring 510 sq. ft. in Financial Year 2006-07. Subsequently, the society entered into a redevelopment arrangement with the developer under the Development Agreement (DA) executed on 15.02.2013. Under the said agreement, every existing member became entitled to receive, in lieu of the existing premises, a permanent alternate accommodation (PAA) comprising the original carpet area together with 30% additional carpet area without any monetary consideration. The assessee also became entitled to additional area purchased from the developer under the redevelopment scheme and a further area transferr
