TaxTMI 
TaxTMI 
2021 (10) TMI 553
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....allowed to withdraw the said appeal. 3. On this concession ITA No. 7162/Del/2019 is dismissed as withdrawn. 4. The sum and substance of the grievance of the assessee in ITA No. 471/CHANDI/2018 is that the CIT(A) erred in confirming the addition of Rs. 41,71,334/- made on account of interest on FDR, interest on SB account and interest from Clarion Properties. 5. Briefly stated the facts of the case are that during the course of the scrutiny assessment proceedings the AO noticed that the assessee has received following amounts from non members:- 1. Interest on FDR 8,47,188/- 2. Interest on SB account 60,615/- 3. Interest from Clarion Properties 32,63,531/- Total 41,71,334/- 6. Assessee was required to expla....
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....of the assessee and discussion and also in view the decision of Hon'ble Supreme Court in the case of Bangalore club Vs. CIT, mentioned supra, the income so earned from the non-members amounting to Rs. 41,71,334/- is brought to tax. However, the assessee has shown an income of Rs. 11,480/- against which assessment is framed at Rs. 41,71,334/- resulting thereby an addition of Rs. 41,59,854/-. 8. Assessee carried the matter before the CIT(A) and reiterated what has been stated before the AO during the course of the assessment proceedings. After considering the facts and the submission the CIT(A) held as under:- I have carefully considered the appellant's submissions. I have also perused the copy of the agreement dated 16.07....
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....l further also pay a onetime interest free maintenance deposit (IFMD) @ Rs. 538/- per sq. Mtr payable at such rate for total super area of the said unit, which deposit shall be payable before or at the time of execution of this agreement to the association. IFMD collected by the Association/third party from different users/owners includings the 2nd party herein by the society shall be handed over by the third party/Association to the First party/Developer @ 6% simple interest per annum for 15 years and the interest earned shall be utilized towards the maintenance expenses. At the end of the 15 years the first party/developer shall hand over the entire amount of IFMD to the third party/association within 2 months of being called upon to do s....
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....the builder was required to provide for services for 15 years and after the expiry 15 years the IFMD was to be transferred to the association. The counsel contended that the reimbursement received by the association was not taxable in the hands of the association as IFMD was not a voluntary deposit made by the apartment owners with the object of earning an income but was a compulsory condition for receiving possession of the apartment. 10. Per contra the DR supported the findings of the AO and read the relevant findings of the CIT(A). 11. I have given a thoughtful consideration to the orders of the authorities below. At the very outset I would like to refer to the judgment of the Hon'ble Supreme Court in the case of Bangalore Club....