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TMI Blog2017 (4) TMI 1657X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax (Appeals) has grossly erred both in law and on facts in confirming the order of assessment dated 29.01.2016 framed under section 143(3) of the Act at an income of Rs. 1,39,280/- as against returned income of Nil/-. 2 That the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts in failing to appreciate that the assessee is a "Mutual Benefit Society" and hence the receipt of the assessee is not taxable on the principles of "Mutuality". 3 That the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts in failing to appreciate that receipt by way of interest, cannot be brought to tax in the hands of the assessee. 4 Without prejudice to the aforesaid, learned Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the said application affidavit of Chartered Accountant as well as the president of the association has also been filed. After hearing both the parties and considering the contents mentioned in the affidavit, we are condoning the delay of 91 days and admitting the appeal for hearing on merits. 3. The brief facts qua the issue involved the assessee is welfare association of air force navy farm owners the said association has been registered under the "Society Registered Act, 1860". It has also applied for a PAN under the status artificial juridical person (AJP), which was given by the concerned authorities. It has filed its return of income for the A.Y. 2013-14 declaring a surplus of Rs. 37,080/- income assessment has been completed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that none of the authorities have examined this issue and therefore the matter should be set aside to the file of the Assessing Officer. After considering the rival submissions and also perusing the material placed on record we find that the assessee an Air Force, Navy Farm owner's welfare association has been registered under the Societies Registered Act 1860. Vide certificate dated 23.10.2000 this fact has been acknowledged by the ld. Assessing Officer also in the second para of the assessment order. The only dispute is that whether the assessee should be taxed @ maximum marginal rate applicable, AOP or not. The assessee has also claimed that status is of an artificial juridical person and not AOP. However the Learned CIT(Appeals) ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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