2022 (12) TMI 1165

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....deposits made by it out of the maintenance deposit/ fund received from its members. It is submitted that the Appellant is required to maintain the society and incur common expense of the society out of the income received from the maintenance deposits, and thus, there is an overriding charge and obligation on the income earned by the Appellant out of the deployment of the maintenance deposit and the same should not have been taxed in the hands of the appellant. It is submitted that it be so held now and the addition made by the learned Assessing Officer and as confirmed by C.I.T.(Appeals) be deleted. 2. The Assessing Officer wrongly assessed the Appellant as Trust when the Appellant is a Co-operative Society. It is submitted that it be so....

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....ng Officer observed that the contribution from members residing in the society and availing common facilities. The assessee society received income in respect of Axis Bank FDR interest, HDFC FDR interest and Savings Bank interest. The assessee in return of income claim deduction under Section 57 of the Act at Rs. 29,87,472/- and show net income of Rs. 21,844/- and claimed the said amount of Rs. 21,844/- as deduction under Section 80P of the Act. The Assessing Officer made addition of Rs. 8,32,052/- towards Fixed Deposit with Axis Bank and HDFC Bank as well as Savings Bank regarding the interest element. The Assessing Officer also rejected the claim under Section 80P of the assessee. 4. Being aggrieved by the assessment order the assessee f....

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.... 339 ITR 525, decision of Hon'ble Bombay High Court in case of Sind Coop. Hsg. Society vs. ITO 317 ITR 47, decision of Hon'ble Delhi High Court in case of CIT vs. Talangang Co-op. Housing Society Ltd. 339 ITR 518. The Ld. A.R. also relied upon the decision of Ahmedabad Tribunal in case of Manekbaug Co-op. Housing Society Ltd. (ITA No. 2133/Ahd/2006 order dated 05.03.2010). 6. The Ld. D.R. relied upon the order of CIT(A) and the order of the Assessment Order. 7. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that from the Balance Sheet the maintenance deposit is excessively used for maintenance of the residential premises and therefore, the collection of maintenance deposits are ke....