2016 (6) TMI 1046

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....05-06, 2006-07 and 2007-08. 2. We are disposing of all six appeals by this common order as it is admitted position between the parties that the issue which arise for our consideration in all the six appeals are identical, save and except the quantum involved. 3. In all the six appeals, the revenue urges only following common questions of law for our consideration : "(i) Whether on the facts and circumstances of the case and in law, the Tribunal is justified in holding that the 'transfer fee' received from outgoing member of society is not taxable on the basis of concept of mutuality ?" 4. At the very outset Mr.Irani, learned counsel appearing for the respondent - assessee submitted that the issue arising herein sta....

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....ded to the total income of the assessee. The penalty proceedings under Section 271(1) (c) is initiated separately on the above ground. Subject to the above remarks, the total income of the assessee is computed as under : Members Contribution (as per I & E A/c) Rs.37,16,958/- Add : Int. received from members on dues Rs. 16,406/-   Rs.37,33,364/- Less : Exempt since contribution from Members not taxable Rs.37,33,364/- Interest on FDR with Co-op. Banks not taxable (As per return) Rs.53,61,038/-   Rs.53,61,038/- ========= Nil INCOME FROM OTHER SOURCES   Int. from S.B. A/c Rs. 1,268/- Int. on Loan from Staff Members Rs.15,828/-   Rs.17,096/- Less : ....

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....e revenue as urged in its memo of appeal before it to the effect that CIT (A) was incorrect in holding that contribution received from outgoing members was not taxable on the principle of mutuality. It specifically states that as per bye law, the assessee - society had received sums of money from its members as contribution to "Common Amenity Fund" which was being claimed as not taxable on the ground of mutuality. Thus, the impugned order holds that the same as transfer fee would not be taxable being covered by the principle of mutuality. This by following the decision of this Court in Sind Cooperative Housing Society Ltd (supra). 7. Being aggrieved, the revenue is in appeal before us. Mr. Malhotra, learned counsel for the revenue in sup....

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....nsfer charges covered by the principle of mutuality. The impugned order of the Tribunal also records that the issue before it was with regard to sums received by the respondent-assessee from its members to the common amenity fund. The submissions made on behalf of the revenue were also subject matter of consideration by this Court in Darbhanga Mansion CHS Ltd. (supra) wherein also it was contended that the amount received in General Amenity Fund and Repair Fund by Dharbhanga Mansion CHS Ltd. (supra) was only on account of transfer of flat and garage. In the facts of that case the Tribunal had held that the principle of mutuality will not apply as bye-law of the society and Government Notification prohibited receipt of transfer fees in exces....