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2023 (9) TMI 1211 - AT - Income TaxPrinciple of the mutuality - Maintenance charges received from members - taxing business income against Nil business income filed by the assessee co-operative society - CPC disallowing the claim filed ‘rectified data correction,’ however, the same was not rectified - HELD THAT:- As per the Article 265 of the Constitution of India ‘No tax shall be levied or collected except by Authority of Law”. It must be borne in mind that Rules of procedure are not by themselves an end but to achieve the ends of justice. Rules of procedure are tools forged to achieve justice and not hurdles to obstruct the pathways to justice. Technicalities should not come in the way of substantial justice. Refer case of Nirmala Mehta [2004 (4) TMI 43 - BOMBAY HIGH COURT] as held that offer of receipt by assessee to tax under the Act, will not estop the assessee from contesting the receipt as not exigible under the Act. Therefore, taking note that the assessee is a premises Co-operative Society and is claiming exempt amount on the ground of principle of ‘Mutuality’ amount which it has collected from its members for various charges has been disallowed without examining whether it is exempt under the ‘Principle of Mutuality’ which even though Ld. CIT(A) held to be essential question of fact did not bother to examine the same on the ruse that impugned order before him was an order of CPC u/s 154 of the Act. Be that as it may, for the ends of justice and fair play, we restore this issue back to the file of AO to examine on facts whether the claim of assessee is allowable on the Principle of Mutuality in the light of plethora of decisions the subject and as per the decision of Bombay Oil Seeds & Oil Exchange Ltd. [1993 (1) TMI 41 - BOMBAY HIGH COURT] and ITO vs Venkatesh Premises Co-operative Society Ltd [2018 (3) TMI 675 - SUPREME COURT] - Appeal of the assessee is allowed for statistical purposes.
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