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2020 (5) TMI 138 - AT - Income TaxShare income received from the Society - Society has claimed deduction u/s 80IAB, hence not suffered any tax - whether the share income received by the assessee as member of the society is required to be taxed separately or not? - HELD THAT:- In the instant case, what was received by the assessee was only share of income from the society. The income of the society was taxed separately in the hands of the society. CIT(A) also has given a finding that the income should be taxed in the hands of the society only but not in the hands of individual members. CIT(A) confirmed the addition, because of the reason that the assessee as well as the society have not filed the returns of income, thereby held that the assessee has relinquished the claim for deduction u/s 80IAB which was disallowed by the AO. Since the income of the society was taxed separately as rightly observed by the Ld.CIT(A), individual members of the society are not liable to be tax the same income. Taxing the income again in the hands of the assessee would amount double taxation of the same income which is not permissible. Since, the claim of deduction u/s 80IAB has reached finality in the hands of the society, we hold that both the lower authorities have erred in taxing the share income received by the assessee, accordingly, we set aside the order of the Ld.CIT(A) and delete the addition made by the AO and allow the appeal of the assessee.
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