TaxTMI 
TaxTMI 
2022 (10) TMI 294
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncome-Tax Act,1961. 4. For the assessment year under dispute, assessee filed its return of income on 10.11.2014 declaring income of Rs.4,48,100. 5. In course of assessment proceedings, while examining Form 26AS, the assessing officer could notice that the assessee had earned interest income of Rs.27,34,215 from various banks. Noticing that the assessee had not offered such income to tax, the assessing officer called upon the assessee to explain why it should not be brought to tax, as, such income earned from banks is not covered under the principles of mutuality. In response, it was submitted by the assessee that as per the apartment buyers agreement, each allottee member has to pay certain amount as security for payment of maintenance ch....
X X X X Extracts X X X X
X X X X Extracts X X X X
....passed by the lower authorities. There is no dispute to the fact that assessee is a registered society form with the basic object to provide for maintenance and repair of common arrears and facilities of the building to its members. There is no dispute about the maintenance 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 s....