Commissioner Of Income Tax v. M/S Danish Housing Cooperative Society Limited

Commissioner of Income Tax Vs. M/s Danish Housing Cooperative Society Limited 21.03.2014. Shri Sanjay Lal for the appellant. This is revenue’s appeal under section 260-A of the Income Tax Act calling in question the concurrent orders passed by the Commissioner (Appeal) and the Income Tax Appellate Tribunal. Respondent/assessee is a Housing Cooperative Society registered under the MP Cooperative Societies Act, and is engaged in development of land and thereafter providing it to its members plots on cost to cost basis. For the assessment year in question i.e… 2009-2010, the assessee declared ‘nil’ income in its return. However, in the assessment proceedings under section 143(2) of the Act, an income of ` 2,94,39,000/- was assessed. The assessing officer found that additions have been made on account of transfer of capital assets, but the appellate authority interfered into the matter mainly on the ground that the books of account of the assessee society was audited by Registrar of the Cooperative Societies, the transfer itself were registered during the years under consideration and the undisputed fact goes to show that the assessee society is only engaged for the purpose of development of land and providing the same to its members on cost to cost basis. Taking note of the totality of the evidence, it was found that there was no evidence on record to say that the society has ever received any amount from the buyers and as the audited balance-sheet by the statutory authorities showed that there was no profit on sale of capital assets, concurrent findings have been recorded by the Commissioner (Appeals) and the Tribunal in the matter. The concurrent orders passed by the appellate authorities are in accordance with law and we find no error in the same warranting interference in these proceedings. Accordingly, the appeal stands dismissed. ( RAJENDRA MENON ) ( SMT. VIMLA JAIN ) J U D G E J U D G E Aks/-