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2021 (1) TMI 203 - AT - Income TaxAssessment of society - Transaction of leasing out two premises to its two members - concept of mutuality denied- Addition on account of rent income received by the Appellant from two of its members under section 22 - assessee claimed that these were the contribution of the members, which cannot be treated as income chargeable to tax - A.O. held that payments received from same entity was not offered to tax in one instance and claimed not taxable in another instance which cannot be allowed and not accept the claim of mutuality in respect of the payment received from the two parties - HELD THAT:- Assessee has submitted certain details in support of its claim. These have not been discussed in the orders of the authorities below. CIT appeals has raised certain queries in his appellate order. It is not discernible that he has confronted the assessee with the same. He has written in his order that assessee has not shown factual details - unless CIT appeal puts it across to the assessee, the assessee cannot comply with the learned CIT appeals questions which are in CIT appeals mind - assessee has submitted certain materials including the rental agreements, copies of bylaws , a sketch of the rented portion and certain case laws also. AO has wondered as to how the assessee has not explained how on similar reasoning assessee has not treated the gym charges and rents received from Tata Power as exempt. No explanation in this regard is on record. Furthermore, the assessee has tried to submit that the rental income derived by it is equivalent to rent received by a club from renting its rooms. In this regard, the observation of the CIT appeals is germane that it is not brought on record as to how other members can also take the said premises on rent when the same is let out throughout to the same party. These documents referred herein above need to be remitted to the file of learned CIT appeals to examine the issue afresh - Appeal by the assessee stands allowed for statistical purposes.
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