TMI Blog2015 (10) TMI 2251X X X X Extracts X X X X X X X X Extracts X X X X ..... e maintenance and development of society which ultimately benefit the society and its members. It is for the Revenue to being on record concrete and cogent evidence on record to prove that these amounts have been received under any compulsion or coercion or involuntary so as to violate the notification of Government of Maharashtra. The Revenue has not brought on record any document or any cogent material to prove that these are involuntary payments, which have been extorted by way of force, coercion or compulsion. The same is the ratio of decision of the Hon'ble Bombay High Court in the case of Sind Cooperative housing society (2009 (7) TMI 15 - BOMBAY HIGH COURT), whereby, the Hon'ble High Court held that there is no evidence brought on record by the Revenue that these are compulsive contributions. Therefore, in the facts and circumstances of the case, in the absence of any cogent adverse material brought on record by the Revenue to prove that these contributions are received under coercion and involuntary in nature so as to be in violation of the notification of Government of Maharashtra, the impugned addition made on the basis of surmises, conjectures and assumptions is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und of the society. As on date he is the member of the society in respect of flat no. 16 of as principle of mutuality applies and income is not liable to tax. In support of our claim copy of the I register enclosed. (iii) On 26th November, 2009, ₹ 1,22,800/- received from Smt. Kailash Dhirendra Shah as voluntary contribution towards common amenity fund of the society. As on the date, she is the member of the society in respect of flat no. 15 as principle of mutuality applies and income is not liable to tax. In support of our claim copy of the I register enclosed. (iv) On 26th November, 2009, ₹ 71,425/- received from Shri Dhiren C. Shah of flat no. 16 for the use of common passage outside his flat. As on date he is member of the society as principle of mutuality applies and income is not liable to tax. Copy of the society letter 29th October, 2009 enclosed. (v) On 26th November, 2009, ₹ 81,350/- received form Smt. Kailash D.C. Shah of flat no. 15 for the use of common passage outside her flat. As on date she is member of the society as principle of mutuality applies and income is not liable to tax. Copy of the society letter dated 29th October, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tuality applies to those receipts which are regularly collected from all members on a uniform basis and all these collections have a direct nexus to the expenditure of the society on different heads and are borne equally by all members. However, the above receipts are on account of amount collected in guise of voluntary contribution towards common amenity fund of the society on their admission as members of the society and therefore cannot be termed as receipts governed by principle of mutuality. h) There is an element of income attached to these amounts collected in guise of voluntary contribution but on account of transfer of flats. i) The amounts are collected over above ₹ 25,000/- collectible as per Notification of Government of Maharashtra. 5. The Assessing Officer further held that ₹ 5,85,075/- has been received in connection with transfer of flats/purchase of flat by the payer of the amount and It is in the nature of income taxable under the Act and principles of mutuality cannot be applied and hence he brought to tax the impugned amount as income of the society. 6. Aggrieved , the assessee society carried the matter in appeal before the CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the recipients. He also drew our attention to the Judgments of Hon'ble Bombay High Court in the case of CIT Vs. Darbhanga Mansion CHS Ltd in Income Tax Appeal No. 1474 of 2012 dated 18.12.2014 and Sind Cooperative Housing Society v. ITO, [2009] 182 Taxman 346 (Bom.) to contend that the afore-stated amounts cannot be charged to tax. 9. Ld. DR on the other hand, relied upon the orders of authorities below as well as the order of Mumbai Bench of Tribunal in the case of Hatkesh Co-op Housing Society Ltd. in ITA No.494 to 500/Mum/2011 . 10. I have considered the rival submissions, perused the material on record and case laws relied upon by the rival parties. It is observed that the assessee society has received contribution from incoming members who have purchased the flats in the society after they have become the members of the society and the said fund is credited to the common amenity fund which is stated by the society to be used for the purpose of heavy repairs and maintenance of the society as well for use of common passage. The said amount, as stated by the assessee-society, will be used for carrying out repairs and maintenance in the society which will benefit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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