M/s. Ananda Residents Welfare Association, Noida V. JCIT, Noida

ITA 6839/DEL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 91464 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 15-07-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 18-12-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MANOJ KR CHOPRA
• Assessee Lawyers: ASHISH SINGHAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH SMC-2, NEW DELHI) BEFORE SHRI J. S. REDDY, ACCOUNTANT MEMBER I.T.A. NO.6839 /DEL/2014 ASSESSMENT YEAR : 2010-11 ANANDA RESIDENTS WELFARE ASSOCIATION, VS. JCIT, RA NGE 1, ANANDA APARTMENT, SECTOR 48, NOIDA NOIDA GIR / PAN:AABAA2892C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ASHISH SINGHAL, CA RESPONDENT BY : SHRI MANOJ KR. CHOPRA, SR. DR DATE OF HEARING : 15.07.2015 DATE OF PRONOUNCEMENT : 16.07.2015 ORDER THIS IS AN APPEAL FILED BY ASSESSEE DIRECTED AGAIN ST THE ORDER OF LD. CIT(A) NOIDA, DATED 05.09.2014 FOR THE ASSESSMENT YEAR 2010-11 ON THE FOLLOWING GROUNDS: I) THAT THE LD. A.O. WAS NOT JUSTIFIED N TAXING TH E NOC FEES RECEIVED AMOUNTING TO RS.60,000/- AS THE RECEIPT WA S BASED ON CONCEPT OF MUTUALITY, HENCE, CANNOT BE TAXABLE. TH AT THE LD. CIT(A) WAS NOT JUSTIFIED TO TAXING THE NOC FEES RECEIVED. II) THAT THE LD. A.O. WAS NOT JUSTIFIED IN TAXING T HE MISC. FEES RECEIVED AMOUNTING TO RS.42,668/- AS THE RECEIPT WA S ALSO BASED ON CONCEPT OF MUTUALITY, HENCE CANNOT BE TAXABLE. THA T THE LD. CIT(A) WAS NOT JUSTIFIED TO TAXING THE MISC. FEES. 2. THERE IS DELAY OF TWO DAYS IN FILLING THIS APPEA L, WHICH WE CONDONE. 3. AFTER HEARING RIVAL CONTENTIONS, WE HOLD AS FOLL OWS:- THE ISSUE WHETHER THE ASSESSEE IS COVERED BY THE PRINCIPLE OF MUTUALITY, IS NOT IN DISPUTE BEFORE US. THE ONLY ISSUE IS WHETHER THE A MOUNT OF RS.60,000/- RECEIVED BY THE ASSESSEE FOR NOC FOR TRANSFER OF FL AT BY ITS MEMBER IS COVERED BY THE PRINCIPLE OF MUTUALITY. AT THE TIME OF RECEIPT OF AMOUNT OF ITA NO.6839/DEL/2014 2 RS.60,000/-, THE PERSON WHO PAID THE SAME, IS A MEM BER OF THE SOCIETY. IT IS ONLY AFTER THE RECEIPT OF NOC, THE MEMBER TRANSFERR ED HIS INTEREST AND IT IS ONLY THEREAFTER, HE SEIZES TO BE MEMBER OF THE ASSE SSEE SOCIETY. THUS, THE AMOUNT OF RS.60,000/- RECEIVED, IN MY VIEW, IS COVE RED BY THE PRINCIPLE OF MUTUALITY. THIS ISSUE IS COVERED IN FAVOUR OF ASSE SSEE BY THE DECISION OF HON'BLE BOMBAY HIGH COURT IN THE CASE OF SIND COOPE RATIVE HOUSING VS ITO 226 CTR 145. THEREFORE, I ALLOW THIS GROUND OF ASSESSEES APPEAL. 4. ON THE AMOUNT OF MISCELLANEOUS RECEIPT ONLY A SU M OF RS.13,768/- IS SAID TO HAVE BEEN RECEIVED FROM OUTSIDE PARTIES. T HUS, ONLY THIS AMOUNT CAN BE SUBJECTED TO TAX. THE ASSESSEE IS GRANTED RELIE F OF RS.42,668/-. 5. IN THE RESULT, APPEAL OF ASSESSEE IS PARTLY ALLO WED. 6. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH JULY, 2015. SD./- (J. S. REDDY) ACCOUNTANT MEMBER DATE: 16 TH JULY, 2015 SP COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DEL HI. TRUE COPY. BY ORDER (ITAT, NEW DELHI). ITA NO.6839/DEL/2014 3 S.NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON 15/7 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 16/7 SR. PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/AM 5 APPROVED DRAFT COMES TO THE SR. PS/PS 16/7/15 SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 16/7 SR. PS/PS 7 FILE SENT TO BENCH CLERK 17/7 SR. PS/PS 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER