9911796707
TMI Blog2023 (7) TMI 793X X X X Extracts X X X X X X X X Extracts X X X X ..... the return of income - HELD THAT:- As in the past years as well as in the succeeding assessment years, the income earned by the assessee has not been subject to tax, since it is a society formed exclusively for the benefit of its members, and the Department has accepted this position both in the preceding and succeeding assessment years. Accordingly, in view of the well-established principles of consistency , the surplus income earned by the assessee cannot be subject to tax, since this income was offered to tax purely by way of mistake by the CA of the assessee at the time of filing of return of income. Matter is being restored to the file of Ld. CIT(Appeals) to analyse whether this position taken by the assessee that it s income has not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant at maximum marginal rate without appreciate that share of each member in the cooperative Society is specific and identifiable and therefore, while assessing income of appellant as AOP, income of the appellant was not to be charged at maximum marginal rate. 3. The Ld. CIT (A) erred on facts and in law in upholding action of Assessing Officer i.e. CPC in taxing member's share capital contribution as revenue receipt. 4. The Ld. CIT (A) erred on facts and in law in upholding action of Assessing Officer i.e. CPC in taxing member's contribution as revenue receipt without appreciating that unconsumed contribution is returnable to the members. 5. Without prejudice to the Ground Nos 1-4, The Ld. CIT (A) erred on facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e return of income was processed by CPC and in the intimation issued by CPC u/s 143(3) of the Act, it accepted income filed by the assessee, however, tax was computed ₹ 81,816/- i.e. at the maximum marginal rate. 5. Before Ld. CIT(Appeals), the assessee submitted that the surplus of ₹ 2,72, 718/- has been offered as income in the return of income by mistake. The assessee submitted that the surplus should not have been taxed as it's taxable income because the assessee is governed by the principles of mutuality. Ld. CIT(Appeals) however, dismissed the appeal of the assessee with the following observations: "It is seen that the appellant itself has shown income of Rs. 2,72,718/- in. the return of income. The CPC has not made any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material on record. Before us, the main arguments put forth by the counsel for the assessee is that in this particular year, a mistake has been committed by the CA of the assessee, wherein at the time of filing return of income, the surplus income earned by the assessee, which operates on the principle of mutuality, has been incorrectly offered to tax in the return of income. However, in the past years as well as in the succeeding assessment years, the income earned by the assessee has not been subject to tax, since it is a society formed exclusively for the benefit of its members, and the Department has accepted this position both in the preceding and succeeding assessment years. Accordingly, in view of the well-established principles of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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