TMI Blog2022 (10) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... adhasoami Satsang [ 1991 (11) TMI 2 - SUPREME COURT] . The facts prevailing in earlier years and subsequent years are exactly identical to the facts in the year under consideration. Hence, we have no hesitation to hold that the receipts from members in the sum being amount received from members towards SGF as capital receipts not chargeable to tax. Accordingly, the original grounds raised by the assessee on merits are allowed. Since the relief is granted to the assessee on merits, the legal ground raised by the assessee challenging the validity of reopening need not be adjudicated and is hereby left open. Accordingly, the appeal of the assessee is allowed. - ITA No.6512/Mum/2019 - - - Dated:- 23-5-2022 - SHRI M.BALAGANESH, ACCOUNTANT ME ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Maharashtra Co-operative Societies Act, 1960. The assessee has been granted the licence by the Reserve Bank of India (RBI) to carry on the business of banking. Only an employee of the Municipal Corporation of Greater Mumbai who is in continuous service is entitled to membership of the assessee bank and related privileges thereto. The assessee bank accepts deposits from general public. The sole purpose of assessee is to utilise the deposits in the form of giving loans to members and also carry on activities for the benefit of the members. As per the mutual agreement between the members and the assessee bank by way of resolution passed in general meeting, whenever the assessee bank gives any loan to the member, a part of the loan amount wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 59,00,000 0 5. Less transfer to BDDR 0 1,84,08,988 6. Closing Balance 14,54,71,836 0 3.2. The short point of dispute in this appeal is whether the amounts received during the year towards SGF in the sum of Rs.2,09,32,478/- could be brought to tax. We find that surety guarantee fund is governed on principle of mutuality as admittedly the loans are given by the assessee only to its members and a part of such loan is retained by the assessee and credited to SGF account. Hence, the entire funds lying in the SGF account would represent the amounts received from its members only. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the year under consideration. The principle of consistency is required to be maintained by the Revenue. Reliance in this regard is placed on the decision of the Hon ble Supreme Court in the case of Radhasoami Satsang reported in 193 ITR 321(SC). The facts prevailing in earlier years and subsequent years are exactly identical to the facts in the year under consideration. Hence, we have no hesitation to hold that the receipts from members in the sum of Rs.2,09,32,478/- being amount received from members towards SGF as capital receipts not chargeable to tax. Accordingly, the original grounds raised by the assessee on merits are allowed. Since the relief is granted to the assessee on merits, the legal ground raised by the assessee challenging ..... X X X X Extracts X X X X X X X X Extracts X X X X
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