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TMI Blog2016 (3) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... the voluntary contribution of Rs. 70,00,000/- by one of its member in lieu of transferring right to the exclusive use of the valuable assets/facilities by the society during the A.Y.2007-08 is covered within the principals of mutuality." 2. The issue raised in ground no.1 whether the CIT(A) is justified in holding that the voluntary contribution of Rs. 70,00,000/- by one of its member in lieu of transferring right to the exclusive use of the facilities by the society is covered within the principals of mutuality. 3. The brief facts of the case are that the assessee, a co-operative housing society, received donation of Rs. 70,00,000/- from Shri Kirit R. Jasani a member as voluntary donation and the same was shown under the head of "Build ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out of non-mutuality. 4. The ld. DR on the other hand relied on the order of the AO by arguing vehemently that the donation was not received out of mutuality and therefore constituted income of the assesee society and prayed for setting aside the order of the CIT(A) and upholding the order of the AO. The ld. AR per contra, while arguing the case brought to our notice that the case of the assessee was covered in its favour by a decision of tribunal in its own case in ITA No. 467/Mum/2008: Assessment Year 2004-05 therein a similar voluntary donation received of Rs. 1,75,00,000/- from a member to make good the shortfall in the expenditure incurred by the Society for undertaking the major repairs and renovation of the building and therefore th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cited by the learned counsel, the assesee-society in fact had surplus funds on the exchange of the FSI to the new members admitted in the society. In the present case, there is no such question of any surplus in the hands of the assessee-society. 10. In the present case one of the members volunteered himself to contribute substantial amount to the assessee-society to undertake substantial maintaining and repairing work of the existing building. The repairs and maintenance and uplift of the existing building as a whole are beneficial to all the members of the society. Therefore, in the activities carried out by the assessee-society in spending the contribution received from the member, the principle of mutuality has been strictly observe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... member was spent by the assessee-society for renovating the building and making additional facilities. As an additional facility the assesee-society has given the right of additional parking space and right to use one of the lifts to the donor member. But it has to be seen that the entire amount has been spent for the members. There is no surplus in that account. Where there is no surplus in that account there is no question of income. Therefore, one has to see that as a matter of fact, even before applying the principle of mutuality there is no question of income arising at all. 13. If we examine the case from another angle, it is to be seen that it is only a question of expenditure. The member who volunteered himself to contribute Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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