TaxTMI 
TaxTMI 
2022 (9) TMI 1267
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....Ld. CIT (A) was justified in deleting the addition of Rs. 3,73,02,450/- on account of interest earned on IBMS( Interest bearing maintenance security) ignoring the facts that the same issue is squarely covered by the decision of Hon'ble Apex Court in the case of Bangalore Club Vs CIT(2013) 35 ITR 509 which is in favour of Revenue . b. Whether the Ld. CIT (A) correctly justified the principal of mutuality in this case in view of the ratio of concept of mutuality as laid down by the Hon'ble Apex court in the case of Bangalore Club Vs CIT(2013) 35 ITR 509. c. That the appellant craves for the permission to add, delete or amend grounds of appeal before or at the time of hearing of appeal." 3. Brief facts of the case are that, the assesse....
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....order dated 20/08/2019 by relying on the judgment of the Coordinate Bench of the Tribunal in the case of Belaire Condominium Association Vs. ITO, ITA No. 655/del/2018 dated 25/04/2018 allowed the appeal filed by the assessee by deleting the addition made by the A.O. 5. Aggrieved by the order of the Ld.CIT(A) dated 20/08/2019, the assessee has preferred the present Appeal on the grounds mentioned above. 6. We have heard the parties, perused the material on record and gave our thoughtful consideration. 7. It is found that the assessee has received a total receipt of Rs. 3,89,02,450/- as interest on IBMS Security, out of the said amount a sum of Rs. 3,73,02,450/- has been received as IBMS and Rs. 16,00,000/- has been received as interest on....
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....tenance charges being collected and utilised towards maintenance. The dispute is regarding the interest income earned by it on deposit with the Bank made out of the security deposit obtained from its members. The AO has held that the interest earned on it is not covered by the principle of mutuality after the judgment of the Supreme Court in the case of Bangalore Club (Supra). The alternative contention of the assessee that interest paid by it on such security deposit is to be set off against interest income earned on such deposit has also been rejected by the AO. After going through the facts of the case we are of the considered opinion that the AO has gone wrong in rejecting this contention of the assessee society. As rightly pointed out ....