2010 (3) TMI 1205

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.... D E R Per B. Ramakotaiah, A.M. This appeal by the Revenue is against the order of the CTA XVI, Mumbai dated 29.01.2009 cancelling the penalty levied under section 271(1)(c). 2. The basic facts are that the assessee has received an amount of ₹ 42.8 lakhs on transfer of flats and these were credited to the Building Heavy- Repair Fund. The receipts were not offered to tax on the belief th....

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....by stating as under: - "12. I have carefully considered the submissions of the appellant. The appellant had claimed that it was under the bona fide belief that the amounts received from outgoing/incoming members are not assessable to tax. In order to arrive at this conclusion, it had relied on certain decisions of the High Court and Supreme Court and also some decisions of the ITAT. Moreover, wh....

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....tions received by it from outgoing/incoming members are covered by principle of mutuality. There is also merit in the submission that the assessments have been done based on decisions which have been rendered after the transfer of these flats. It is true that the assessment to tax the receipts of the amounts received by the appellant from outgoing/incoming members has been confirmed by the higher ....

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....elied on the order of the ITAT in ITA No. 1883/Mum/2006 in the case of Maersk India Private Limited wherein on similar facts it was held as under: - "7. We have considered the submissions of both the parties, material on record and orders of the authorities below. It is noted that the assessee has claimed these expenses as of revenue nature on the basis of certain judicial decisions available at....