TaxTMI 
TaxTMI 
2009 (7) TMI 689
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....and welfare fund being the first contribution made by the existing/new member is transfer fee as in the case of Walkeshwar Triveni Co-operative Housing Society Ltd. v. ITO [2004] 267 ITR (AT) 86 (Bom) [SB]? (b) Whether, on the facts and in the circumstances of the case, the hon'ble Tribunal erred in setting aside the issue as regards the taxability of non-occupancy charges when there were three decisions of the Mumbai Tribunal directly on the point without there being any contrary decision? 2. For some factual aspects, it will be necessary to reproduce some of the relevant bye-laws of Mittal Court Premises Co-operative Society Limited. "D.3.4 No member shall let, sub-let or give on leave and licence or care-takershi....
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....time for offices/godowns etc. according to the area subject to ratification by the general body meeting." "D.3.3. A licensee or a care-taker, who has been allowed temporary use of any residential and or non-residential office premises by the society may also be admitted as nominal member of the society on payment of Rs. 10 as entrance fee. Such member shall not exercise any right of membership or receive any advantage or benefit or dividend etc." 3. Similarly we may reproduce relevant bye-laws of Maker Chambers-III Premises Co-operative Society Ltd., which though are not the subject-matter of these appeals, nonetheless are related as they are the subject-matter of writ petitions where such issue is for consideration. "4....
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.... his shares or occupancy rights are only in respect of housing residential societies. In the instant case, the appellants before us are not housing residential societies and consequently, those notifications would not be applicable. Having said that, we may note again that as an illustration in so far as Maker Chambers are concerned, the main object is to manage, maintain and administer the property of the society; to undertake and provide amenities and facilities for the benefit of its members of public benefit on his own account or jointly with the co-operative institutions, social, cultural or recreational activities. Similarly under bye-law B.1.1.(b) and (c), similar are the objects of Mittal the Court Premises Co-operative Society Ltd.....
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....t years under the appeals. It had been further contended that the society had collected non-occupancy charges strictly in terms of the notification dated March 9, 1995, which was in force during the previous years relevant to the assessment years under appeal. This contention was rejected relying upon the commentary by Mahendra C. Jain and H. M. Bhatt on the Maharashtra Co-operative Societies Act, 1960. It was also held that the observations in the case of Walkeshwar Triveni Co-operative Housing Society Ltd. [2004] 267 ITR (AT) 86 (Bom) [SB] are apposite and for that reasons allowed the appeal preferred by the Revenue. 8. Arguments advanced on behalf of the appellants/petitioners are based on the principles of mutuality which we have adv....
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....between the incoming members and the transferee is irrelevant in so far as the society is concerned. There is an agreement by which the amount is paid by the transferee. In so far as the society is concerned, even if receipt is issued in the name of transferee it is in the nature of admission fee which could be appropriated, only on the transferee being admitted. Merely because the amount may be appropriated earlier, it will not lose the character of the amount being paid by a member. In these circumstances, the identity of the contributor and beneficiary being satisfied and considering the provisions of the Maharashtra Co-operative Societies Act and Rules framed thereunder, surplus can be disposed of in favour of the members only or for th....