On October 27, 2025, the Income Tax Appellate Tribunal (ITAT) Mumbai ruled that short term capital gains (STCG) from transferring development rights to a builder under a registered agreement, should be taxed in the individual homeowner’s hands rather than the housing society’s. This ruling came about after a case was filed by the RBI Employees Bhagvati Co-op. Housing Society Ltd which is a Co-operative Housing Society registered under the Maharashtra Co-operative Housing Society Act 1960. The housing society filed this case against the income tax department after they added Rs 5 crore (4,97,63,657) to their STCG income and slapped on a penalty of Rs 1.5 crore (1,53,76,971).