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TMI Blog2025 (4) TMI 862X X X X Extracts X X X X X X X X Extracts X X X X ..... 2019 passed u/s.143(3) of the Act. 2. The only issue for our consideration in the instant appeal is that whether the Nominal Membership fees and Share Transfer fees received one time is of Capital Nature or Revenue nature. 3. Facts of the case in brief are that the assessee is a Cooperative Bank and income of Rs. 9,24,24,070/- declared in the return for A.Y. 2017-18 furnished on 25.10.2017. After the case being selected for scrutiny through CASS and validly serving of notices for carrying out the assessment proceedings, ld. AO noticed that the assessee has credited the following amounts directly to the Reserve Fund : Sl.No. Particulars Amount (Rs.) 1. B Class Fee 1719100/- 2. Member Share Entrance Fee 9600/- 3. Member Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee does not constitute Revenue Receipt by observing as under : "9. We heard the rival submissions and perused the material on record. The only issue which requires to be adjudicated in the present appeal is whether the Membership fee received by the appellant society from members constitutes revenue receipt or capital receipt? It is undisputed fact that the appellant society had transferred the subscription or membership fee to the reserve fund. This treatment given in the books of account is stated to be in accordance with the provisions of the bylaws of the appellant society and also in conformity with the provisions of the Maharashtra State Co-operative Society Act, 1960. The Hon'ble Apex Court in the case of Peerless General Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich the Division Bench followed Peerless General Finance and Investment Co. Limited (supra), and then held as follows: "In Peerless General Finance and Investment Co. Ltd. v. Reserve Bank of India (1992) 75 Comp Cas 12, the Supreme Court on similar facts held that the deposits were capital receipts and not revenue receipts (vide paragraphs 67 & 68 of the aforesaid judgment). That case also pertains to a finance company which used to collect deposits, and credited part of its deposits to the profit and loss account, as in the present case. Hence, the ratio of the said decision, in our opinion, applies to this case also. It is well settled in income-tax law that book keeping entries are not decisive or determinative of the true nature of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the present case there is no such finding that the deposit was forfeited or that at the end of the transaction the security deposit became the property of the assessee or that changed from a capital receipt to a revenue receipt. Hence, that decision is clearly distinguishable." This Court, on 21.07.2015, in appeal against the said judgment held as under: "After reading of the decision of the High Court, we find that the High Court has rightly relied upon the judgment of this Court in "Peerless General Finance & Investment Co. Ltd. & Anr. v. Reserve Bank of India" (1992) 2 SCC 343. Since the case is squarely covered by the judgment, we do not find any merit in these appeals and petitions which are accordingly, dismissed." It is als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid down in this decision had not application to issue on hand, inasmuch as, the issue in the present appeal does not involve the exemption of income on mutuality principle. Therefore, we are of the considered opinion that the income received by the appellant society in the form of subscription or admission fee does not constitute revenue receipt in the hands of the appellant society. Accordingly, the grounds of appeal no.1 and 2 are allowed. 12. In the result, the appeal in ITA No.604/PUN/2017 for the assessment year 2009-10 is partly allowed. 13. Since the grounds raised by the assessee in rest of three appeals i.e. ITA Nos.605, 606 and 2611/PUN/2017 for the assessment years 2012-13, 2013-14 and 2014-15 respectively are identical to g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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