TaxTMI 
TaxTMI 
2022 (4) TMI 1267
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.... Income Tax Ahmedabad 5 erred in law and on facts in remanding the matter back to the Assessing Officer for making such further enquiry on the ground that Assessment Order passed u/s. 143(3) of the Income Tax Act, 1961 is erroneous and prejudicial to the interest of revenue by invoking provisions of Section 263 of the Income Tax Act, 1961. 02. The learned Pr. Commissioner of Income Tax erred in law and on facts in not considering facts that the appellant is a Co-op. Housing Society which is not formed for carrying on any business. The amount deposited with the bank by the society is not extra fund available with the society but same is received from the members of the appellant society as deposits with specific directions that inco....
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....ssessment, the Ld. A.O. allowed exemption on interest income earned on deposit of surplus fund with nationalized banks without considering the jurisdictional high court decision. The Pr. CIT initiated proceeding u/s. 263 of the Act. 4. During the 263 proceeding, the Ld. A.R. of the assessee submitted that the facts of the assessee's case are different and the above rulings do not apply to the assessee's set of facts. The assessee earned interest income from bank deposit which is made out of advance maintenance deposit received from its members with a specific direction to use interest income earned thereon for maintenance expenses of the society. In other words, it is an overriding charge for the society for incurring maintenance....
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....for exemption. The interest income of Rs. 19,824/- from Co-Op bank is considered and found eligible. It is observed that there is lack of identity between contributors and participators of the fund and thus, the interest income from State bank of India and Union Bank of India to the tune of Rs. 9,96,163/- is not eligible for exemption and liable to be taxed. 4.1 The assessee place reliance on the decision of Hon'ble ITAT Ahmedabad in the case of M/s. Sakar Corporation Vs. DCIT, Circle 6(1), Ahmedabad. The assessee has failed to submit copy of judgment in the case and the said case was not located in taxman utility. Further, reliance was placed on the decision of Hon'ble Gujarat High Court in the case of CIT Vs. Aadarsh Co-O....
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....m those on which reliance has been placed upon by Ld. Pr. CIT while framing the 263 order. The assessee submitted that the facts of his case is squarely covered by the Ahmedabad ITAT decision in the case of M/s. Sakar Corporation vs. DCIT ITA No. 1831/Ahd/2003. However, we note that neither the Ld. A.O. nor the Ld. Pr. CIT has considered the decision by Supreme Court of India in the case of Bangalore Club v. CIT [2013] 29 taxmann.com 29 (SC) wherein it has been has held that interest earned by assessee-club on fixed deposits from its member banks would not be exempt from tax on basis of doctrine of mutuality. When we brought this fact to the attention of the parties, the Ld. counsel for the assessee submitted that facts of the Supreme Court....