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2016 (3) TMI 172 - AT - Income TaxVoluntary contributions towards special repair fund - whether charging of transfer fees has no element of trading or commerciality and the same was covered under the concept of mutuality ? - Held that:- Commissioner of Income-tax (Appeals) was justified in deleting the addition on account of voluntary contributions towards special repair fund holding that charging of transfer fees has no element of trading or commerciality and the same was covered under the concept of mutuality. - Decided against revenue Carry forward and set off of unabsorbed depreciation and business loss - Commissioner allowed the claim - Held that:- In the instant case the Assessing Officer has accepted that the assessee-society has been receiving transfer funds, which is governed by the principle of mutuality and the disallowance was limited to repair funds on the ground that it is in excess of the amount prescribed in the bye-laws whereas the learned Commissioner of Income-tax (Appeals) held that even that amount is governed by the principle of mutuality since it cannot be termed as transfer fees but amounts to sharing of the actual expenditure incurred for renovation work and hence it cannot be said to be in violation of the conditions prescribed in the bye-laws. In effect the Assessing Officer as well as the Commissioner of Income-tax (Appeals) admitted that the assessee-society is governed by the principle of mutuality and it is not carrying on any business. Such being the case it cannot be said, for the limited purpose of the claim of carry forward depreciation, that it was engaged in any business. Under these circumstances, of the view that the learned Commissioner of Income-tax (Appeals) was not justified in setting aside the matter for fresh consideration - Decided in favour of revenue
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