TMI Blog2019 (4) TMI 1780X X X X Extracts X X X X X X X X Extracts X X X X ..... are therefore rejected. On a perusal of the order of the Tribunal, it can be observed that the corpus fund maintained by the builder in a separate account which belongs to the society cannot be the income of the assessee. Therefore, when the corpus fund itself cannot be treated as income of the assessee, the builder, in my view the interest accrued thereon also cannot be assessed in the hands of the builder. Thus, respectfully following the said decision, direct the Assessing Officer to delete the interest income assessed in the hands of the assessee and belong to Building Society. Grounds raised by the assessee are allowed. - ITA NO. 2315/MUM/2018 (A.Y: 2012-13) - - - Dated:- 12-4-2019 - Shri C.N. Prasad, Hon'ble Judicial Mem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as given its PAN details to the bank. The funds were only in the custody of the assessee which belongs to the society and the entire corpus fund along with interest accrued belongs to the society and it was also clearly mentioned on the face of the TDS certificate also. Not convinced with the submissions of the assessee the Assessing Officer treated the interest income of the society as interest income of the assessee. On appeal the Ld. CIT(A) sustained the action of the Assessing Officer. 3. Ld. Counsel for the assessee submits that identical issue has been decided by the Coordinate Bench of this Tribunal in the case of ACIT v. M/s. Evershine Builders Pvt. Ltd., in ITA.No. 2827/Mum/2018 dated 01.02.2010 wherein it was held that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,17,050/- made by the Assessing Officer on account of corpus fund collected by the assessee during the year when the assessee is offering the interest earned on corpus fund for taxation and the corpus fund is not transferred to the society even after a long period of completion of projects. 2. At the time of hearing both parties have agreed that the issue under consideration is covered against the revenue and in favour of the assessee by the order of the Tribunal in the assessee s group case in ACIT vs. M/s. Seagreen Ever Shine Builders Pvt. Ltd. in ITA No.3287/Mum/2008 for Assessment Year 2004-05 dated 13th March, 2009, therefore, the issue may be decided accordingly. 3. We have carefully heard the submissions of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held vide para-4 of its order dt.13th March 2009 as under: 4. After hearing the ld. Departmental Representative and the ld. Counsel, we are of the considered opinion that the order of the ld. CIT(A) is to be upheld. It is the fact that the assessee received aforesaid amount towards corpus fund which was separately kept to be handed over to the society being formed and for the amount collected the assessee acts as Trustee for the cooperative societies till the societies are formed. Since the assessee is following the provisions of the Maharashtra Ownership of Flats Act, 1963, the Corpus Fund cannot be treated as income of the assessee. Accordingly order of the ld. CIT(A) on this issue is upheld. In the absence of any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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