The Tax Publishers2016 TaxPub(DT) 2383 (Mum-Trib)

 

Lands End Co-operative Housing Society Ltd. v. ITO

 

INCOME TAX ACT, 1961

--Income--Mutuality principleReceipt of transfer fees and non occupancy charges----Transfer fees and non-occupancy charges received by a co-operative society meant for maintenance of, flats owned by its members for common benefits were not chargeable to tax by principle of mutuality.--Assessee-society, formed to look after maintenance of flats owned by its members, received non-occupancy charges from those members who let out their flats, as per its bye-laws, to be spent for common purpose, for the benefit of its members. AO made addition thereof on the ground that same were not covered by principle of mutuality. Held: Object of contribution was to increase funds which could be used for fulfilment of objects such as to provide services, amenities and facilities to members. The principle of mutuality was thus satisfied and non-occupancy charges were not, therefore, taxable in the hands of assessee.

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT

TaxPublishers.in

'Kedarnath', 7, Avadh Vihar, Near Nirali Dhani,

Chopasni Road

Jodhpur - 342 008 (Rajasthan) INDIA

Phones : 9785602619 (11 am - 5 pm)

E-Mail : mail@taxpublishers.in / mail.taxpublishers@gmail.com