2024 (6) TMI 66

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....ear 2018-19 ['AY' hereinafter]. 2. The case was called twice; none appeared on bequest of the assessee. The Ld. DR however sought our attention assessee's letter dt. 28/05/2024 whereby the appellant society requested for adjournment for preparation of paper book and collecting documents etc. After considering the issue involved in the present appeal, we deem it fit to reject the request and proceed to adjudicate the issue on merits ex-parte u/r 24 of ITAT-Rules, 1963 with the able assistance from the Revenue 3. The long and short of the case is that; the appellant assessee is a cooperative housing society registered under the provisions of Maharashtra State Co-op. Societies Act. For the year under consideration the assessee was in rec....

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.... reiterate that, the appellant failed to enter the details of contribution received from the members is governed by the principle of mutuality and also failed to classify correctly interest received by it from the co-operative bank/institution is eligible for deduction u/s 80P(2)(d) of the Act. 7. The two issues viz; (a) non-taxability of contribution received from members towards common pool and (b) allowability of deduction u/s 80P(2)(d) of the Act against the interest earned from the deposits held by one co-operative society with another co-op. society is no-more res-integra. 8. The appellant is a housing co-operative society and admittedly is governed by the doctrine of mutuality. This doctrine of mutuality refers to the principle....

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....sion of Hon'ble Delhi High Court, in the case of 'CIT Vs Bharat General Reinsurance Co. Ltd.' [1971, 81 ITR 303 (Del)] 10. The amount of Rs.86,400/- received by the appellant from its member was admittedly towards contribution to common pool of the society and since is governed by the doctrine of mutuality hence is inexigible to tax. The incorrect reporting of such contribution while filing the return would per-se does not change the character & nature of such receipt, therefore such incorrect reporting would in no case sanction the tax authorities to bring it under the tax net. Thus the addition made on this score stands deleted as contra-legem. 11. Insofar as the allowability of deduction u/s 80P(2)(d) is concerned, on perusal o....