MITTAL TOWER PREMISES CO OP SOCIETY LTD Vs. ITO
INCOME TAX APPELLATE TRIBUNAL
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Sushma Chowla, Judicial Member -
(1.) THESE cross-appeals filed by the assessee & revenue are against the order of CIT(A)-X11, Mumbai dated 23.02.2007 relating to Assessment Year 2003-04 against the order under Section 143 (3) of the Income Tax Act, 1961.
ITA No. 2906/Mum/2007 :: Assessee's appeal:
(2.) The grounds of appeal raised by the assessee are as under:
1.1 The Income Tax Officer erred in making addition in the computation of total income of Rs. 10,27,012/- being 2 items as under & CIT (A) in confirming the same:
1.2. It is submitted that on the principle of mutuality the above items are not taxable Accordingly, it is submitted that additions made be deleted.
Mr. K. Ravi Kiran, Departmental Representative appeared for the revenue and Mr. K. Shivram & Rahul Hakani, learned Counsel appeared for the assessee and put forward their rival contentions.
(3.) THE issue raised by the assessee is against the taxability of receipts received by way of non-occupancy charges by the assessee society. THE assessee is a co-operative society and the aforesaid receipts were claimed to be not taxable on the ground of mutuality. During the year under consideration, the assessee had received a sum of Rs. 9,16,162/- from the Members not occupants of the premises on account of maintenance charges of flats let out by them. THE Assessing Officer held the said receipts to be taxable in the hands of the assessee society over and above the limits. THE CIT (A) observed that the assessee was recovering the non-occupancy charges which were higher from such non-occupant members than the other members and hence there is profit motive, which is taxable.;
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