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2019 (6) TMI 447 - HC - Income TaxDisallowance u/s 14A -Tribunal deleted the disallowance confirmed by the CIT(A) and holding that the AO should examine the matter on this issue on the assessee's point of view - HELD THAT:- Tribunal has merely remanded the issue before the Assessing Officer for fresh consideration. We do not find any error. This question is, therefore, not entertained. Addition on account of water charges paid to BMC - Tribunal deleted the disallowance and not upholding the order of CIT(A) confirming the said disallowance, on the ground that the said expenditure was allowable u/s 23(1) being incurred for conducting specific event - HELD THAT:- Expenditure was towards water charges paid by the assessee to the Bombay Municipal Corporation in relation to rented premises. The Assessing Officer was of the view that this did not form the part of the Corporation charges and therefore was to be disallowed. Section 128A of the Maharashtra Municipal Corporation Act inter alia provides that property tax leviable on buildings and lands under the Act shall include water tax, sewerage tax etc. Thus, statutorily water tax was a component of the property tax to be paid to BMC. The Commissioner (Appeals) and the Tribunal, therefore, committed no error in disallowing the claim. Addition on account of club share income of assessee from caterer - whether the same was exempt under principle of mutuality? - CIT(A) deleted the addition - HELD THAT:- CIT, while deleting such disallowance came to the conclusion that the club had collected money from the members for food and refreshment out of which a sum of ₹ 9.20 Lakhas was retained while releasing the payment in favour of the caterer. This was, thus, a sum collected from the members on the principle of mutuality. This amount was, therefore, not taxed. While making payment to the caterer from the amount collected from the members, the club had retained a small portion to meet with its administrative expenses. We find no error in the view of the Commissioner as upheld by the Tribunal. - Revenue appeal dismissed.
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