2019 (4) TMI 1780

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....g Officer on perusal of ITS/AIR details noticed that assessee received interest income of Rs..20,97,846/- from the fixed deposits held with IndusInd Bank. However, he noticed that this interest has not been accounted for in the return of income. Assessee was asked to explain as to why this should not be treated as income of the assessee. The assessee contended that the said interest pertains to the fixed deposit held by Bhoomi Realtors Account Building Maintenance, Bhoomi Realtors Account corpus fund and the interest on these fixed deposits belongs to society and the amounts were handed over to the society along with the interest thereon, and hence the said interest did not belong to the assessee but were part and parcel of the society mone....

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..... Therefore, it is submitted that the corpus fund and interest of the society belongs only to the society and not to the assessee and therefore, no part of the interest shall be assessed in the hands of the assessee. 4. Ld. DR vehemently supported the orders of the Authorities below. 5. Heard rival submissions, perused the orders of the Authorities below and the decision of the Coordinate Bench in the case of ACIT v. M/s. Evershine Builders Pvt. Ltd., (supra), I find that the issue is squarely covered in favour of the assessee by the Coordinate Bench wherein it has been held as under: - "This appeal preferred by the revenue is directed against the order dt.16.1.08 passed by the ld. CIT(A) for the Assessment Year 2002-03 taking follow....

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.... reply which was the same as submitted in the immediately preceding Assessment Year 2001-02, wherein in the assessment the said Corpus Fund was treated as nothing but sale consideration of the flats sold by the assessee in the AY 2001-02, followed the same conclusion and added the amount of Rs. 6,17,050/- collected by the assessee as Corpus Fund, as assessee's business income. On appeal, the ld. CIT(A) while concurring with the decision of Learned Settlement Commission that this would not form part of assessee's income in view of the clear penal liability prescribed u/s.13 of the MOFA, 1963 for keeping these accounts of Corpus Fund separately and transfer to the society, deleted the addition made by the AO. 4. In M/s. Seagreen Ever Shine....