Stay Application – Pendency of Appeal before CIT(A) – Addition made based on statement recorded of third party which was retracted – Assessee salaried employee – unconditional stay granted and attachment on bank account lifted.

1. Hoshang Jamshed Mohta vs. Income Tax Officer Ward 42(2)(3) & others

[Writ Petition (L) no. 4937 of 2026 dated 23/2/2026 BOMBAY HIGH COURT) A. Y. 2022-23 :

Stay Application – Pendency of Appeal before CIT(A) – Addition made based on statement recorded of third party which was retracted – Assessee salaried employee – unconditional stay granted and attachment on bank account lifted.

During the year under consideration, the Petitioner sold ancestral land admeasuring 4,775 sq. mtrs. in Vesu, Surat, Gujarat to Bhavya Developers (a partnership firm) on 18th October, 2021 for a consideration of ₹10 Crores. This was done by a Registered Conveyance Deed, on which the requisite stamp duty on the value of ₹10 Crores was also paid.

The Petitioner invested a part of the sale consideration in a residential property and purchased a Flat in Mumbai on 20th December, 2021 from Keystone Realtors Pvt. Ltd. for ₹5,27,00,000. The Petitioner claimed deduction of ₹5,03,06,880/- under Section 54F of the Act, and offered the balance to tax as Long Term Capital Gains on the sale of land.

During the course of the scrutiny assessment proceedings, Respondent No.3 issued notice under Section 142 (1) of the Act, seeking de