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TMI Blog2013 (2) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... by the apex court. 2. The assessee is a plot owner society. In the assessment year in question, the assessee had received a sum of Rs. 12,98,742 as the TDR premium from its members. In the original return of income, the assessee had offered the TDR premium of Rs. 12,98,742 to tax and after deducting the expenditure incurred by it, computed the income chargeable to tax at Rs. 7,27,660. The said return of income was processed under section 143(1) and accepted without any addition or disallowance. 3. Thereafter, by a notice issued under section 148 of the Income-tax Act, 1961, the Assessing Officer called upon the assessee to show cause as to why the expenditure incurred for earning the TDR premium should not be disallowed and, accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings that the TDR pre-mium was not taxable by applying the principle of mutuality. The Com-missioner of Income-tax (Appeals) further held that the assessee has not been able to prove that the expenditure was incurred for earning the tax-able income and, therefore, the expenditure claimed by the assessee was not allowable. 6. On further appeal filed by the assessee, the Income-tax Appellate Tri-bunal following its decision in the case of Ashok Co-operative Housing Society Ltd. in I. T. A. No. 6894/M/02, dated November 23, 2005, held that the TDR premium received by the assessee was not taxable on account of the principle of mutuality. The Income-tax Appellate Tribunal, however, upheld the order of the Commissioner of Income-tax (Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce the decision of the Income-tax Appellate Tri-bunal is contrary to the aforesaid decision of the apex court, the impugned decision of the Income-tax Appellate Tribunal is quashed and set aside and the matter is restored to the file of the Income-tax Appellate Tribunal for fresh decision in accordance with law. 10. We make it clear that since the TDR premium amount received by the assessee has been voluntarily offered to tax, the question of considering the taxability of that amount by applying the principle of mutuality in the reassessment proceedings does not arise at all. It is only the expenditure claimed to have been incurred by the assessee which is disallowed in the reassessment order that has to be considered by the Income-tax Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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