Vissanji A-1 Friends Co-operative Housing Society Ltd, consisting entirely of senior citizens (most aged 68–80+), has been ordered to pay income tax (plus interest) for assessment years 2011-12 to 2015-16 on interest earned from co-operative bank fixed deposits — an income that was fully exempt under the law prevailing at that time.

Ironically, the society was 100% correct on merits.

The Centralised Processing Centre (CPC) Bengaluru had wrongly disallowed the society’s claim of deduction under Section 80P(2)(d) in 143(1) intimations issued between 2013 and 2016 merely because the returns were filed belatedly. The provision that makes timely filing of return mandatory for Chapter VI-A deductions (Section 80AC) was inserted only from AY 2018-19 — it did not apply to the years in question.

Yet, because of inexplicable lethargy:

• The society took no action for 7–8 years after receiving the 143(1) demands.
• First appeals before CIT(Appeals) were filed only in November 2023 — delayed by 2,500+ days.
• Even after CIT(Appeals) dismissed the appeals in June 2024 on limitation grounds, the society waited another 342 days before approaching ITAT.

In two contradictory affidavits, the society’s 75-year-old secretary blamed a former accountant who “never informed us” and “suddenly left in 2023/2024”. The bench, comprising Judicial Member Sandeep Gosain and Accountant Member Girish Agrawal, was unimpressed.

Dismissing all five appeals on 19 November 2025, the ITAT observed:

“The conduct does not inspire confidence… This is nothing but exploiting the process of law… Phrases like ‘liberal approach’ and ‘substantial justice’ cannot be used to revive dead matters after seven years.”

The tribunal refused to condone even the 342-day delay in filing the present appeals, holding that senior citizenship or ignorance of procedure does not constitute “sufficient cause” when the delay is of such magnitude.

A rough estimate shows the total tax + interest liability across the five years is likely to be ₹4–5 lakh — a significant amount for a small 15-flat society whose members are all senior citizens living on pensions and savings.

Tax practitioners have termed the verdict “technically correct but harsh”, pointing out that thousands of small co-operative societies across Maharashtra suffered similar wrongful 143(1) adjustments during that period, but those who acted within time got full relief.

One senior chartered accountant, speaking anonymously, remarked: “On pure law, this society should have won hands down. But tax litigation is not charity — if you sleep over your rights for eight years, no court will wake you up.”

The order once again underlines the Supreme Court’s repeated dictum: “Law of limitation may harshly affect a particular party, but it has to be applied with all its rigour when the statute so mandates.”

Also Read: ₹60 Lakh Plot Bought in 2005 Sold for ₹8 Crore in 2022 – Income Tax Sends ₹1.6 Crore Demand

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14-Year-Old Redevelopment Deal Turns Contentious

The dispute traces back to December 2011, when the Society signed a Development Agreement and Power of Attorneywith Huges Real Estate Developers. The proposal was initially filed under DCR 1991, but subsequent regulatory changes—most notably the implementation of DCPR 2034—altered the redevelopment potential.

Members of the Society began demanding larger flats and higher corpus payments. Huges revised its offers multiple times, eventually offering 520 sq. ft. carpet area and a corpus of ₹9 lakh per member in November 2022. The Society’s Special General Meeting (SGM) on 27 November 2022 approved this revised offer.

However, within weeks, the Society reversed its decision. On 1 January 2023, it resolved to terminate Huges’ contractand by September 2023 appointed Kumar Vibes LLP as the new developer, who offered significantly higher benefits—645 sq. ft. carpet area and a ₹17 lakh corpus per member.

Huges Moves Court Against Termination

Huges challenged the termination in Commercial Suit (L) No. 28114 of 2023, seeking:

• A declaration that the 2011 agreement plus revised offers were still valid,
• Specific performance of the contract,
• An injunction restraining the Society from appointing another developer, and
• Damages of over ₹40 crore.

The Society, on the other hand, defended its move, citing inordinate delay, lack of a concluded contract under revised terms, and the superior offer from the new developer.

Single Judge’s 2024 Order

In October 2024, a Single Judge of the High Court refused Huges’ plea for injunction, permitting the Society to move forward with Kumar Vibes. However, the Court directed that the new developer must obtain an unconditional NOC from Huges, in line with the tender conditions.

This led to cross-appeals—Huges appealed against the refusal of injunction, while the Society challenged the NOC condition.

Division Bench Ruling

A Division Bench of Chief Justice Alok Aradhe and Justice Sandeep V. Marne, pronouncing judgment on 19 August 2025, upheld the Society’s right to proceed with redevelopment.

Key findings included:

• Delay Not Solely Huges’ Fault: The Court noted that policy changes and Society’s own actions contributed to the delay, but redevelopment could not be stalled further.
• No Concluded Contract on Revised Terms: While the 2011 agreement existed, renegotiated offers required a fresh or supplemental contract, which never materialised.
• Redevelopment Cannot Be Halted: The Bench stressed that residents’ right to safe housing in dilapidated buildings outweighs a developer’s right to profit.
• NOC Condition Removed: The requirement for Kumar Vibes to secure Huges’ NOC was deleted. Huges’ interests, the Court said, could be pursued through monetary compensation in its pending suit.

Outcome

• Huges’ appeal for injunction dismissed.
• Society’s appeal against the NOC condition allowed.
• Redevelopment to proceed immediately with Kumar Vibes Properties.
• Huges may continue to pursue its damages claim of ₹40 crore.

Also Read: Slum Dwellers not cooperating in Redevelopment will be removed by this Govt Body

The post Court Refuses to Stall Khernagar Redevelopment appeared first on Square Feat India.

Extension of Amnesty Scheme

Initially launched on December 7, 2023, the Maharashtra Stamp Duty Amnesty Scheme was designed to remit or reduce stamp duty and penalties on specific documents, regardless of whether they were registered. The scheme was implemented in two phases: the first from December 1, 2023, to January 31, 2024, and the second from February 1, 2024, to March 31, 2024.

The Government has extended the first phase to February 29, 2024, and the second phase to June 30, 2024. Further extending the scheme, the new amendment now extends the second phase until August 31, 2024.

Expanded Scope of the Scheme

The extension also introduces new provisions for documents issued by registered Co-operative Housing Societies located on land governed by Maharashtra Housing and Area Development Authority (MHADA), City and Industrial Development Corporation of Maharashtra Limited (CIDCO), Maharashtra Industrial Development Corporation (MIDC), or local municipal authorities. These include First Allotment Letters, Agreements, or Share Certificates executed on unstamped paper or letterheads.

Key Amendments to the Scheme

• Extension of Deadline: The scheme’s end date has been extended from June 30, 2024, to August 31, 2024.
• Inclusion of New Documents: The amendment adds a new category of documents to the scheme. This includes First Allotment Letters or Share Certificates related to residential or non-residential units issued by specific housing and development authorities.
• Updated Conditions: The revised order stipulates that only unstamped instruments specified in the new clause (g) of the Annexure will be eligible for the scheme.

Purpose and Benefits

The Maharashtra Stamp Duty Amnesty Scheme is aimed at facilitating the smooth registration of documents and relieving citizens of the burden of backdated stamp duties and penalties. By extending the scheme and broadening its scope, the Government aims to address various issues related to the registration of property documents and support housing development.

Next Steps for Applicants

Individuals and entities eligible for the scheme should ensure they apply within the new extended deadlines and meet the specified conditions to benefit from the reduced stamp duties and penalties.

The Government of Maharashtra continues to focus on providing relief to taxpayers and streamlining administrative processes through such initiatives, ensuring greater compliance and efficiency in property transactions.

Also Read: Mumbai sees more property registrations in Feb 2024 but collects less stamp duty than previous year

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