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2015 (10) TMI 2251 - AT - Income TaxVoluntary contributions received from Members - whether be treated as transfer fees ignoring the principle of mutuality as held by CIT(A) - Held that:- The assessee society has received contribution from incoming members who have purchased the flats in the society after they have become the members of the society and the said fund is credited to the common amenity fund which is stated by the society to be used for the purpose of heavy repairs and maintenance of the society as well for use of common passage. The said amount, as stated by the assessee-society, will be used for carrying out repairs and maintenance in the society which will benefit all the members including the incoming members. The authorities below are not able to show or bring on record any cogent material/ evidence that these amounts are being received as 'transfer fee' in violation of notification of Government of Maharashtra. The concept of cooperative society is for benefit and development of housing society whereby the members contribute the funds which are used by the society for the maintenance and development of society which ultimately benefit the society and its members. It is for the Revenue to being on record concrete and cogent evidence on record to prove that these amounts have been received under any compulsion or coercion or involuntary so as to violate the notification of Government of Maharashtra. The Revenue has not brought on record any document or any cogent material to prove that these are involuntary payments, which have been extorted by way of force, coercion or compulsion. The same is the ratio of decision of the Hon'ble Bombay High Court in the case of Sind Cooperative housing society (2009 (7) TMI 15 - BOMBAY HIGH COURT), whereby, the Hon'ble High Court held that there is no evidence brought on record by the Revenue that these are compulsive contributions. Therefore, in the facts and circumstances of the case, in the absence of any cogent adverse material brought on record by the Revenue to prove that these contributions are received under coercion and involuntary in nature so as to be in violation of the notification of Government of Maharashtra, the impugned addition made on the basis of surmises, conjectures and assumptions is not sustainable. Hence, delete the addition made by the Assessing Officer and as confirmed by the CIT(A). - Decided in favour of assessee.
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