TMI Blog2016 (8) TMI 1507X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Appellant : Smt. Aarti Vissanji, Shri Shavin S. Divatia, A.R. For the Respondent : Shri Chandra Vijay, D.R. ORDER PER SHAILENDRA KUMAR YADAV, J.M: Both appeals have been filed by assessee against the orders of Commissioner of Income-Tax (Appeals)-32, Mumbai, dated 14.10.2013 15.10.2013 for A.Ys. i.e. 2009-10 2010- 11 respectively. Since, these appeals pertain to same assessee and on similar issue, so they are being disposed of by common order for the sake of convenience. 2. In ITA No.7203/Mum/2013 for A.Y. 2009-10, assessee has filed appeal on following grounds: 1. The Learned Commissioner of Income Tax (Appeals) - 32 erred in confirming the order of the Assessing Officer charging to tax contribut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esentative pointed out that all these appeals are covered in favour of the assessee by the order of ITAT A Bench Mumbai in the case of Land End Cooperative Housing Society Ltd. V/s. ITO Mumbai in ITA No.3566/M/2014 A.Y.2009-10 order dated 15.01.2016 wherein this issue of mutuality is decided in favour of the assessee by holding as under: 8.3 We have heard the rival submission and perused the material on record. We find that the CIT(A) enhanced the income of the assessee by rejecting the deduction u/s. 80P(2)(d) of the Act of ₹ 14,88,107/- being interest on investment with other Coop. banks by following the decision in the case of Bancira Samruddihi Co-operative Housing Society Ltd.(Supra) which was passed on the basis of the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms referred to in sub-section (1) shall be the following, namely. (a) In the case of a co-operative society engaged in- (i) carrying on the business of banking or providing credit facilities to its members. The whole of the amount of profits and gains of business attributable to any one or more of much attributes. (d) In respect of any income by way of interest or dividends derived by the co-operative society from its investments with any other co-operative society, the whole of such income. From the close perusal of the provisions of u/s 80P(2)(a)(i) and 80P(2)(d) it is clear that the former deals with deduction in respect of profits and gain of business in case of the co-operat ive society carrying on business of banking or p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2)(a)(1) is available only in respect of income which is assessable as business income and not as income from other sources. Whereas in distinction to this , the provisions of section 80(P)(2)(d) of the Act provides for deduction in respect of income of a coop society by way of interest or dividend from its investments with other coop society if such income is included in the gross total neome of the such Coop society. In view these facts and circumstances we are of the considered view that the assessee is entitled to the deduction of ₹ 14,88,107/- in respect of interest received/derived by it on deposits with coop. banks and therefore the appeal of the assessee is allowed by reversing the order of the CIT(A). The AO is directed accor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded for nonoccupation charges. The contribution, therefore, was by the members for the purpose of mutual benefit. The object of the contribution was the purpose of increasing the society's funds, which could be used for fulfilling the objects of the society. The object of the society was to provide service, amenities and facilities to its members. In these circumstances, the principle of mutuality would apply and therefore non-occupancy charges were not taxable. In our opinion the case of the assessee case is squarely covered by the aforesaid decision. We, therefore, respectfully following the decision of the Jurisdictional High Court delete the addition of ₹ 6,04,500/- on account of non-occupancy charges. The AO is directed accor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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