2011 (2) TMI 1592

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....of Hon'ble Mumbai ITAT and the decision of Hon'ble Bombay High Court in the case of M/s. Sind CHSL, wherein it has been held that no-occupancy charges taken from members who have let out their flats is exempt under principle of mutuality. 2. The learned CIT(A) erred in deleting he addition on account of transfer charges of Rs. 95,000/- following the decision of Hon'ble High Court of Bombay in the case of M/s. Shyam CHS and Suprabhat CHS wherein it has been held that all amounts received by the CHS on the grounds of transfer charges are exempt under the principle of mutuality. The decision is not accepted by the Department and the issue is subjudice." 3. Ground No.1 is regarding the addition for non-occupancy charges Rs. 8,36,400....

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....e, is by the member, the object of the contribution is for the purpose of increasing the society's funds, which could be used for the object of the society. The object of the society as noted earlier is to provide service, amenities and facilities to its members. In these circumstances, in our opinion, the principle of mutuality as discussed in Income tax Appeal No.931 of 2004 must also apply. There is no element of profiteering. The bye laws there under provides for the same. We may here point out that the matter had been remanded by the Tribunal. The Tribunal had observed that the Assessing Officer to treat the non-occupancy charges received by the assessee-society which is a premise society over and above the 10 per cent of the maintenan....