ITO 16(2)(3), MUMBAI V. MEHERINA CHS LTD, MUMBAI

ITA 8714/MUM/2011

• Counselvise Citation: 871419914 RSA 2011
• Duration Of Justice: 3 year(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 01-07-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 26-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PREMCHAND JSR
• Assessee Lawyers: AS HOK UNADKATCA

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B MUMBAI . . , . . , BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER /AND SHRI B.R.BASKARAN, ACCOUNTANT MEMBER ITA NO.8714/MUM/2011 (A.Y.2005-06) THE INCOME TAX OFFICER - 16(2)(1) MATRU MANDIR MUMBAI- 400 007 GIR NO./PAN : AAAAM 3083 G (APPELLANT ) VS. M/S. MEH E RINA CHS LTD. C-51, NAPEAN SEA ROAD MUMBA-400 026.. (RESPONDENT) APPELLANT BY : SHRI PREMCHAND .J-SR.A R RESPONDENT BY : SHRI AS HOK UNADKAT-CA DATE OF HEARING : 07/01/2015 DATE OF PRONOUNCEMENT : 07/01/2015 ORDER PER I.P.BANSAL, J.M: THIS APPEAL IS FILED BY THE REVENUE . IT IS DIRECTE D AGAINST THE ORDER PASSED BY THE LD. CIT(A) DATED 21/10/2011 FOR THE ASSESSMENT YEAR 2005-06. THE GROUNDS OF APPEAL READ AS UNDER :- THE APPELLANT PRAYS THAT THE ORDER OF THE CIT(A) O N THE ABOVE GROUNDS BE SET ASIDE AND THAT OF THE AO BE RESTORED. 1. THE LD. CIT(A) ERRED IN DELETING THE ADDITION ON AC COUNT OF VOLUNTARY CONTRIBUTION OF RS.21,69,200/- FOLLOWING THE DECISIONS OF HON'BL E HIGH COURT OF BOMBAY IN THE CASE OF M/S. SIND CO-OP. HSG. SOCIETY AND VARIOUS D ECISIONS OF THE MUMBAI TRIBUNAL ON THE GROUND THAT THE SAID VOLUNTARY CONT RIBUTIONS ARE EXEMPT UNDER THE PRINCIPLE OF MUTUALITY. THE DECISION HAS NOT BE EN ACCEPTED BY THE DEPARTMENT AND THE ISSUE IS SUB-JUDICE. 2. THE LD. CIT(A) ERRED IN DELETING THE ADDITION ON AC COUNT OF GARDEN MAINTENANCE OF RS.30,000/- FOLLOWING THE DECISION OF HONBLE TR IBUNAL IN ASSESSEES OWN CASE FOR AYS 2000-01, 2001-02 AND 2002-03 BY HOLDING THA T THE SAME IS EXEMPT UNDER THE PRINCIPLE OF MUTUALITY. 2 2. THE FIRST GROUND OF THE REVENUE RELATES TO SUM O F RS.21,69,2000/- RECEIVED BY THE ASSESSEE AS TRANSFER FEE FROM THE MEMBERS. LD. CIT(A) HAS ACCEPTED THIS CLAIM OF THE ASSESSEE ON THE BASIS OF DECISION OF ITAT IN TH E CASE OF THE ASSESSEE ITSELF FOR ASSESSMENT YEAR 2000-01 AND ALSO VARIOUS OTHER DECI SIONS ACCORDING TO WHICH TRANSFER FEE RECEIVED BY CO-OPERATIVE HOUSING SOCIETY IS EXE MPT ON THE PRINCIPLE OF MUTUALITY. THE DEPARTMENT IS AGGRIEVED WITH SUCH RELIEF GRANTE D BY THE LD. CIT(A) AND HAS EXPRESSED GRIEVANCE IN GROUND NO.1. 3. WE HAVE HEARD BOTH THE PARTIES AND WE FOUND THAT THIS ISSUE IS NO MORE RES- INTEGRA AS RECENTLY HON'BLE BOMBAY HIGH COURT VIDE ITS ORDER DATED 18/12/2014 IN THE CASE OF CIT(A) VS. DARBHANGA MANSION CHS LTD. IN INCOME TAX APPEAL NO.1474/2012 HAVE HELD THAT TRANSFER FEE RECEIVED BY CO-OPERATIV E HSG. SOCIETY FROM INCOMING AND OUTGOING MEMBERS (EVEN IN EXCESS OF LIMITS ) IS EXE MPT ON THE GROUND OF MUTUALITY. THEREFORE, AFTER HEARING BOTH THE PARTIES, WE FIND NO MERIT IN GROUND NO.1 AND THE SAME IS DISMISSED. 3.1 SO FAR AS IT RELATES TO GROUND NO.2 IT IS EVIDE NT THAT THE IMPUGNED RELIEF HAS BEEN GRANTED BY THE LD. CIT(A) ON THE BASIS OF THE DECIS ION OF THE TRIBUNAL IN ASSESSEES OWN CASE IN RESPECT OF ASSESSMENT YEAR 2000-01, 2001-02 AND 2002-03. AS CIT(A) HAS FOLLOWED THE EARLIER ORDER OF THE TRIBUNAL IN ASSES SEES OWN CASE, AFTER HEARING BOTH PARTIES, WE DECLINE TO INTERFERE IN THE RELIEF GRAN TED BY THE LD. CIT(A). THEREFORE, GROUND NO.2 OF THE REVENUE IS ALSO DISMISSED. 4. IN THE RESULT APPEAL FILED BY THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 07/01/2015 ! '#$ % &' 07/01/2015 # ! ( SD/- SD/- ( . . /B.R.BASKARAN ) ( . . / I.P. BANSAL ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; & DATED 07/01/2015 . . ./ JV , SR. PS 3 ! !! ! )*+ )*+ )*+ )*+ ,+$* ,+$* ,+$* ,+$* / COPY OF THE ORDER FORWARDED TO : 1. -. / THE APPELLANT 2. )/-. / THE RESPONDENT. 3. 0 ( ) / THE CIT(A)- 4. 0 / CIT 5. +( )* , , / DR, ITAT, MUMBAI 6. (1 2 / GUARD FILE. / BY ORDER, /+* )* //TRUE COPY// 3 33 3 / 4 4 4 4 5 5 5 5 (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI