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2019 (4) TMI 1780 - AT - Income TaxTreating the interest income of society as interest income of the assessee - Corpus Fund collection - HELD THAT:- As perused the orders of the Authorities below and the decision of the Coordinate Bench in the case of ACIT v. M/s. Evershine Builders Pvt. Ltd [2010 (2) TMI 1276 - ITAT MUMBAI] find that the issue is squarely covered in favour of the assessee Corpus Fund collected by the assessee following the provisions of Maharashtra Ownership of Flats Act, 1963, is not the income of the assessee and accordingly we are inclined to uphold the finding of the ld. CIT(A) in deleting the same. The grounds taken by the revenue are therefore rejected. On a perusal of the order of the Tribunal, it can be observed that the corpus fund maintained by the builder in a separate account which belongs to the society cannot be the income of the assessee. Therefore, when the corpus fund itself cannot be treated as income of the assessee, the builder, in my view the interest accrued thereon also cannot be assessed in the hands of the builder. Thus, respectfully following the said decision, direct the Assessing Officer to delete the interest income assessed in the hands of the assessee and belong to Building Society. Grounds raised by the assessee are allowed.
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