TaxTMI 
TaxTMI 
2025 (6) TMI 986
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat assessee is not involved in business activity as per the provisions of Section 2(15) of the I.T. Act ? (b) Whether on the facts and in the circumstances of the case and in law, the CIT(A), Mumbai has erred in deciding that provisions of Section 13(2) are not applicable even though the trustee's were beneficiaries ? (c) Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) Mumbai has erred in allowing the exemption u/s 11 of the I.T. Act to the assessee, by ignoring the facts brought on record by Assessing Officer that during the year assessee has received Rs.1,15,00,000/- as transfer fees, and trustees are elected members of the owners of house where each member is owner of house? 2. According to t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as collected and from that amount the said plot was purchased in the year 1962. It was also observed from the Income and Expenditure Account and the Balance-sheet that the Assessee had collected Rs. 48.68 crores from its members as installments, till date, towards construction of flats. Transfer fees to the tune of Rs.6.35 crores was also collected by the Assessee till date. For the year under consideration i.e. A.Y. 2011-12, the Assessing Officer observed that the Assessee had collected Rs. 1.15 crores as transfer fees from new members and the Assessee - Trust was also in receipt of interest on investment amounting to Rs. 1,07,67,876/-. The Assessing Officer was, therefore, of the view that the Assessee was engaged in a commercial activity....
X X X X Extracts X X X X
X X X X Extracts X X X X
....teria of membership and, therefore, as such no transfer of any asset had taken place in terms of sale/purchase/trading/commerce. The CIT(A) also came to the conclusion that the finding of the Assessing Officer that the 'activity of the Assessee Trust was a commercial activity' was arrived at from the error that members are not fixed, that flats were sold for consideration which was received by the old member and which is not known to the Trust. The CIT(A) came to a factual finding that there is no case of sale consideration, or sale of houses in the market, and there is no transaction of sale or purchase in the admission of the new member in place of the defaulting member, who is admitted only after specifying the eligibility conditions in ....