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2021 (10) TMI 553 - AT - Income TaxUndisclosed income from commercial activities and non members - Addition of interest on FDR, interest on SB account and interest from Clarion Properties - assessee stated at the time of handing over of possession the builder executed with each owner a maintenance agreement as per which the owners were requested to pay one time Interest Free Maintenance Deposit (IFMD) towards maintenance of the society for which the builder was entitled to use income from the said deposit at the rate of 6% per annum towards the provision of maintenance service - As contended reimbursement received by the association was not taxable in the hands of the association as IFMD was not a voluntary deposit made by the apartment owners with the object of earning an income but was a compulsory condition for receiving possession of the apartment HELD THAT:- In the light of this judgment of the Hon'ble Supreme Court in the case of Bangalore Club [2013 (1) TMI 343 - SUPREME COURT] find that the first appellate authority has examined the relevant part of the agreement between Clarison property, the owners/users, the legend Condominium Association, M/s. Ajanta Builder Pvt. Ltd. The relevant findings of the agreement has been extracted elsewhere in the findings of the CIT(A). Considering the relevant part of the agreement in the light of the decision of the Hon'ble Supreme Court (supra). I do not find any error or infirmity in the findings of the CIT(A). - Decided against assessee.
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