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2017 (10) TMI 246 - AT - Income TaxTaxability of catering revenue - Held that:- Identical issue was considered by the co-ordinate bench in the assessee’s own case relating to AY 2007-08 wherein deleted this addition as held that the amount retained by the assessee from the bills raised by the caterers would not be taxable under the principles of mutuality, since the said receipt cannot be considered as amount received from outsiders. The Co-ordinate bench observed that the assessee has received money from its members and paid to the caterers at a lower rate by retaining its share and hence it cannot be said that the transaction involves non-members. In the instant case also, we notice that the facts are almost identical. The outside caterer has given assessee’s share by way of direct payment, the source of which is the collection from the members. Accordingly, consistent with the view taken by the coordinate benches, we set aside the order passed by Ld CIT(A) on this issue and direct the AO to delete the impugned addition. Interest income earned by the assessee from UTI and GOI tax free bonds - Held that:- It is well settled proposition that the AO is not entitled to assess an income, which is otherwise exempt under the Act, since the AO is required to determine the total income in accordance with the law. Since the assessee claims that the above said interest income of ₹ 51.69 lakhs would be exempt u/s. 10(15) of the Act, we are of the view that the same requires examination at the end of the Assessing Officer. Accordingly, we set aside the order passed by the learned CIT(A) on this issue and restore the same to the file of the Assessing Officer with the direction to examine the claim for exemption u/s. 10(15) of the Act and take appropriate decision in accordance with law. Addition of interest income - claim of the assessee is that it has been added by the Assessing Officer without taking notice of the fact that the assessee itself has offered the same as its income in its original return of income and it has resulted in double taxation of same income - Held that:- Since double taxation of same income is not permitted under the Act, we are of the view that this claim of the assessee also requires verification at the end of the AO. Accordingly we restore this issue to the file of the Assessing Officer. Determination of annual value of the property - Held that:- Identical addition has been made by the Assessing Officer in A.Y. 2006-07. However, the Tribunal has restored the same back to the file of the Assessing Officer with the direction to verify the applicability of provisions of Maharashtra Rent Control Act, 1999 to the assessee’s premises. Accordingly, consistent with the view taken by the Tribunal in A.Y. 2006-07, we set aside the order passed by the learned CIT(A) on this issue and restore the same to the file of the Assessing Officer with similar directions given by the Tribunal. Disallowance of payment of water charges made to BMC claimed by the assessee as part of municipal tax - Held that:- As in assessee's own case for AY 2008-09 the assessee is in need of water to maintain the ground and other collateral purposes and accordingly, concluded that the expenditure incurred on water charges is necessary one and allowable under the provisions of section 23(1) of the Act. Since a particular view has already been taken by the co-ordinate bench on this issue, consistent with the view so taken, we set aside the order passed by Ld CIT(A) on this issue and direct the Assessing Officer to allow deduction of water charges/tax paid to BMC u/s. 23(1) of the Act. Applicability of MAT provisions to the assessee - Decide against assessee. MAT credit - assessee cannot be denied the benefit of MAT credit allowable as per the provisions of the Act.
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