ITO 16(2)(1), MUMBAI V. SHYAM CO OP HSG SOCIETY LTD, MUMBAI

ITA 1294/MUM/2013

• Counselvise Citation: 129419914 RSA 2013
• Duration Of Justice: 1 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2008-2009
• Appeal Filed On: 14-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A JAIKARAN
• Assessee Lawyers: ASIKA KHAN
• Section: 143(3)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE S/SHRI P.M.JAGTAP (AM) AND DR. S. T. M.PAVALAN (JM) ./I.T.A.NO.1294/MUM/2013 ( / ASSESSMENT YEAR: 2008-09) INCOME TA X OFFICER , 16(2) (1), ROOM NO.221, MATRU MANDIR, TARDEO ROAD, MUMBAI-400007 / VS. M/S SHYAM CO - OPERATIVE HOUSING SOCIETY LTD, 51,BHULABHJAI DESAI ROAD. MUMBAI-400026 ( / APPELLANT) ( / RESPONDENT) ./ ./PAN/GIR NO. : AAAAS3153K / APPELLANT BY : SHRI A JAIKARAN /RESPONDENT BY MS.ASIKA KHAN # / DATE OF HEARING : 8.5.2014 # /DATE OF PRONOUNCEMENT : 21.5.2014 / O R D E R PER P.M.JAGTAP,AM: THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST T HE ORDER OF LD. CIT(A)-27, MUMBAI DATED 22.11.2012 AND IN THE SOLITARY GROUND RAISED THEREIN, REVENUE HAS CHALLENGED THE ACTION OF THE LD. CIT(A) IN DELETIN G THE ADDITION OF RS.54 LAKHS MADE BY AO ON ACCOUNT OF TRANSFER FEES HOLDING THAT THE SAM E IS EXEMPT AS PER PRINCIPLE OF MUTUALITY. 2. THE ASSESSEE IN THE PRESENT CASE IS A CO-OPERAT ING HOUSING SOCIETY WHICH FILED IT RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATIO N ON 26.9.2008 DECLARING TOTAL INCOME AT RS.NIL. IN THE SAID RETURN, THE AMOUNT OF RS.5 4 LAKHS RECEIVED ON ACCOUNT OF TRANSFER FEES WAS CLAIMED TO BE EXEMPT FROM TAX BY THE ASSESSEE ON THE BASIS OF PRINCIPLE OF MUTUALITY. IN SUPPORT OF THIS CLAIM, RELIANCE WAS PLACED ON BEHALF OF THE ASSESSEE BEFORE THE AO ON THE DECISION OF THE HON BLE BOMBAY HIGH COURT IN ITS OWN CASE FOR ASSESSMENT YEARS 1999-00 TO 2001-02 WHERE IN THE SIMILAR ISSUE WAS DECIDED I.T.A.NO.1294/MUM/2013 2 BY THE HONBLE JURISDICTIONAL HIGH COURT IN FAVOUR OF ASSESSEE. HOWEVER, KEEPING IN VIEW THAT THE SLP WAS FILED BY REVENUE BEFORE THE HO NBLE SUPREME COURT AGAINST THE SAID DECISION OF THE JURISDICTIONAL HIGH COURT, TH E AO DISALLOWED THE CLAIM OF THE ASSESSEE FOR EXEMPTION ON ACCOUNT OF TRANSFER FEES AND ADDED THE AMOUNT OF RS.54 LAKHS TO THE TOTAL INCOME OF THE ASSESSEE IN THE AS SESSMENT MADE UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (THE ACT) VIDE ORDER DA TED 5.8.2010. ON APPEAL, THE LD. CIT(A) DELETED THE ADDITION MADE BY AO ON ACCOUNT O F TRANSFER FEES FOLLOWING THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE AS SESSEES OWN CASE FOR THE ASSESSMENT YEAR 1999-2000 TO 2001-02. AGGRIEVED B Y THE ORDER OF LD. CIT(A), REVENUE HAS PREFERRED THIS APPEAL BEFORE THIS TRIBUNAL. 3. WE HAVE HEARD BOTH THE SIDES AND ALSO PERUSED TH E MATERIAL AVAILABLE ON RECORD. AS AGREED BY THE LD. REPRESENTATIVES OF BOTH THE SI DES, THE ISSUE INVOLVED IN THIS APPEAL OF THE REVENUE IS SQUARELY COVERED IN FAVOUR OF TH E ASSESSEE BY THE VARIOUS DECISIONS OF THE TRIBUNAL AS WELL AS BY THE DECISIONS OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE ASSESSEES OWN CASES, INCLUDING THE DECISION OF THE HONBLE BOMBAY HIGH COURT FOR ASSESSMENT YEARS 1999-00 TO 2001-02 (SUPRA) RELIED UPON BY THE LD. CIT(A) IN HIS IMPUGNED ORDER TO HOLD THAT THE TRANSFER FEES OF R S.54 LAKHS RECEIVED BY THE ASSESSEE IS EXEMPT FROM TAX AS PER PRINCIPLE OF MUTUALITY. RES PECTFULLY FOLLOWING THESE JUDICIAL PRONOUNCEMENTS, WE UPHOLD THE IMPUGNED ORDER OF TH E LD. CIT(A) DELETING THE ADDITION MADE BY AO ON ACCOUNT OF TRANSFER FEES AND DISMISS THIS APPEAL OF THE REVENUE. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST MAY, 2014 ( * + 21ST MAY, 2014 SD SD ( DR. S. T. M.PAVALAN) (P .M.JAGTAP) ( / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI: ON THIS 21ST DAY OF MAY, 201 4 I.T.A.NO.1294/MUM/2013 3 . . ./ SRL , SR. PS ! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT /APPLICANT 2. / THE RESPONDENT. 3. 0 ( ) / THE CIT(A)- 4. 0 / CIT 5. 1 3 , # 3 , / DR, ITAT, MUMBAI 6. / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT. REGISTRAR) # 3 , /ITAT, MUMBAI