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TMI Blog2014 (10) TMI 907X X X X Extracts X X X X X X X X Extracts X X X X ..... any unclaimed dividend thereof, cannot be charged as an income under the Act. Therefore, we set aside the order of the CIT(A) and direct the Assessing Officer to delete the impugned addition. - Decided in favour of assessee Addition on account of other liabilities - Held that:- The stand of the Revenue is unsustainable. It is abundantly clearly that assessee had reflected the impugned sum as a liability in the Balance Sheet. If at all, the Assessing Officer was to treat the same as income in the hands of the assessee, the onus was on him to explain as to how the amounts are to be taxed as incomes. The Assessing Officer does not justify as to why he has treated the impugned sum as income to be taxed under the Act. There is nothing to sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed new member. The said being one time and non trading receipt, the same has to be treated as capital receipt. ITA Nos.2027 to 2029/PN/2013 c. The Share transfer fee is collected for transferring the share/s of member to some other person. It is collected so as to comply with provisions of the Maharashtra Co-operative Act and hence, cannot be termed as an operational/revenue receipt. 2. The learned CIT (Appeals), Pune has erred in law and on facts in confirming the addition made by the AO amounting to ₹ 90,670/- on account of unclaimed dividend transferred to Reserve on the ground that transfer from 'unclaimed dividend account to General Reserve Account is cessation of liability without considering following fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pective Account holders in the subsequent years. c. That the amount collected by the appellant bank which is repayable after a certain event cannot be construed as income . 3 3. At the time of hearing, the learned Authorized Representative for assessee submitted that the assessee does not wish to press Ground of Appeal Nos.1 and 3 relating to addition of ₹ 31,734/- and ₹ 12,314/- on account of Nominal Membership fee and on account of penal interest, respectively. Accordingly, Ground of Appeal Nos.1 and 3 are dismissed as not pressed. 4. The Ground of Appeal No.2 relates to an addition of ₹ 90,670/- made by the lower authorities on account of unclaimed dividend transferred to Reserve Account. The Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds gold auction fund to be returned to the borrowers; iii. Security money deposit received till all the prescribed documents are not received from the borrowers, etc. iv. Advance money received against hypothecation of loan account, which is reversed at the time of recovery or the closure of the account of borrower; and v. certain miscellaneous outstanding payments like creditors for printing, court fees, etc., 7. In sum and substance, the plea of the assessee was that the aforesaid amounts are in the nature of outstanding dues or the deposits of customers which have to be returned subsequently. The Assessing Officer however, held that the amounts received are in the nature of income. The relevant discussion is contai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Balance Sheet. If at all, the Assessing Officer was to treat the same as income in the hands of the assessee, the onus was on him to explain as to how the amounts are to be taxed as incomes. The Assessing Officer does not justify as to why he has treated the impugned sum as income to be taxed under the Act. There is nothing to support the assertions of the Assessing Officer that the bank has ceased to be liable to return the impugned sums. Therefore, we are unable to uphold the stand of the income tax authorities on this aspect and accordingly, we set aside the order of CIT(A) and direct the Assessing Officer to delete the impugned addition. Thus, on this ground also, the assessee succeeds. 10. In the result, the appeal of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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