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TMI Blog2010 (11) TMI 989X X X X Extracts X X X X X X X X Extracts X X X X ..... under: The ld CIT(A) erred in deleting the addition on account of contribution towards common amenities fund of ₹ 33 lacs, following the decision of Hon ble High Court of Bombay in the case of M/s Shyam CHS and Suprabhat CHS wherein it has been held that all abounds received by the CHS on the grounds of transfer charges are exempt under the principle of mutuality. The decision has not been accepted by the department and the matter is subjudiced. 2.1 Facts of the case, in brief, are that the assessee company has credited an amount of ₹ 33 lacs as contribution under the head common Amenities Fund on account of transfer of flat and claimed the same as exempt on the principle of mutuality. The Assessing Officer, aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny amounts received in excess of ₹ 25,000/- would be held to be taxable. But, subsequently, decisions of the Hon ble Bombay High Court in the case of M/s shyam CHS and Superabhat CHs, decision given on 1.10.2009, the Hon ble Court s have clearly stated that all amounts received by the CHS on the grounds of transfer charges are exempt under the principle of mutuality. Since the issue is now fully clarified by the subsequent judgments of the Hon ble Bombay High Court, the amount of transfer fees added by the AO amounting to ₹ 33 lacs stands deleted. 3 Aggrieved with such order of the CIT(A), the revenue is in appeal here before us. 4 After considering the rival submissions made by both the parties, we do not find any i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d raised by the revenue, being devoid of any merit, is dismissed. 5 Grounds of appeal no.2 by the revenue reads as under: The ld CIT(A) erred in deleting the addition on account of non- occupancy charges of ₹ 31,864/- following the decision of various decisions of Hon ble Mumbai ITAT wherein it has been held that non-occupancy charges taken from members who have let out their fats is exempt under principle of mutuality. 6 After considering the rival submissions made by both the parties, we find the co-operative Hsg received an amount of ₹ 31,864/- as non-occupancy charges and claimed the same as exempt on the principle of mutuality. The AO, after rejecting the various submissions made by the assessee held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inciple of mutuality. Without prejudice to the aforesaid ground of cross objection, the expenses incurred against such receipt should be allowed before taxing ay receipt as income. 8.1 Facts of the case, in brief, are that the assessee has credited an amount of ₹ 91,850/- as miscellaneous receipts/income. On being questioned by the Assessing Officer, the assessee submitted that the society has taken receipts as a reimbursement of expenses incurred by the society for use of garden and other areas. Sale of scrap, reimbursement of expenses for grass cutting in backyard land outside the society, common drainage line cleaning, use of chairs and other society furniture, removal of debris etc., included in total receipts during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer shall decide the issue afresh in accordance with law after giving due opportunity of being heard to the assessee. We hold and direct accordingly. Grounds of cross objections no. 1 2 are accordingly allowed for statistical purpose. 11 Grounds of cross objection no.3 by the assessee reads as under: Further, without prejudice to the allowability of receipt of ₹ 33,00,00 ₹ 31,864/- as exempt on account of mutuality, the expenses incurred against such receipt should be allowed before taxing any receipt income. 12 After hearing both the parties, we find this ground is an alternate ground in the Cross Objection to the ground raised by the revenue in its appeal. Since we have already dismissed the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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