9911796707
TMI Blog2014 (7) TMI 425X X X X Extracts X X X X X X X X Extracts X X X X ..... involved in all the four appeals are identical in nature, hence the same are being disposed off with this common order. For the sake of convenience, the facts have been taken from ITA No.2287/M/2013 relevant to assessment year 2002-03. ITA No.2287/M/2013 (Assessment Year 2002-03): 2. Revenue has taken the following grounds of appeal: "1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in allowing 50% of service charges as expenditure incurred as against 1/19th deduction amounting to Rs. 78,727/- allowed by the Assessing Officer without appreciating the facts that the Assessing Officer after detailed discussion, has come to the conclusion that considering the expenditure of lift maintenance, repairs etc, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assesseesociety received the said service charges for offering the use of portion of terrace to certain parties for affixing of telephone towers etc. The assesseesociety claimed a sum of Rs. 3,63,003/- as expenditure incurred for earning the above service charges. However, the Assessing Officer (hereinafter referred to as the AO) allowed only 1/19th out of the said service charges as expenditure amounting to Rs. 78,727/- as against the claim of Rs. 3,63,003/-. 4. In appeal, the ld. CIT(A) allowed 50% of the income from service charges as expenditure following the order of the ITAT on the identical issue in the own case of the assessee for assessment year 2001-02. The relevant observations and findings of the ld. CIT(A) in this respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Hon'ble ITAT and I am of the view that following the decision of the Hon'ble IT AT, the appellant is allowed 50% of service charges as expenditure incurred for earning the said income. Since the department's misc. petition has been dismissed vide order dated 11.03.2011, so the 50% service charges is allowed as expenditure incurred for earning the said income. However, service charges of Rs. 41,576/- as added by the A.O. is confirmed. Hence, this ground of appeal of the appellant is partly allowed." 5. From the above reproduced findings of the ld. CIT(A) it is revealed that the ld. CIT(A) has allowed the expenditure at the rate of 50% of the service charges following the decision of the Tribunal in the own case of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch as principles of mutuality would not be applicable to such receipts as well. Accordingly, he held that Rs. 19,160/- received as transfer fees from the buyer is taxable income of the assessee under the head "income from house property." 6.3 During the course of appellate proceedings it was submitted that as the appellant has received transfer fees of Rs. 19,160/- from the incoming member of the society i.e. the buyer of the flats. At the end of the year, the buyer becomes the member of the society therefore, the ground taken by the A.O. is not correct. The payment made by the buyer is in the nature of transfer fees which is received on becoming the member of the society, hence as per principle of mutuality any receipt from member to soc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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