The Commissioner Of Income Tax City – Iv, Pune v. The Sindh Cooperative Housing Society Limited

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.322 OF 2005ANDINCOME TAX APPEAL NO.342 OF 2005ANDINCOME TAX APPEAL NO.361 OF 2005 The Commissioner of Income Tax City – IV, Pune ..Appellant. Versus The Sindh Cooperative Housing Society Limited ..Respondent. Mr.Vimal Gupta for the appellant. Mr.Atul K. Jasani for the respondent. CORAM : V.C. DAGA & J.P. DEVADHAR, JJ. DATE : 12TH AUGUST 2009 P.C. : 1.Heard learned counsel for the revenue and the learned counsel for the respondent – assessee. Perused appeal. This appeal was admitted on the following substantial question of law : a]Whether on the facts and in the circumstances of the case, the ITAT was justified in holding that the Transfer Fees of Rs.2,35,276/- recrived by the assessee society from the outgoing members was not taxable ? b]Whether on the facts and in the circumstances of the case, the ITAT was right in holding that the Transfer Fees received from outgoing members by the assessee society satisfied test of mutuality and hence such receipt was not eligible to tax ? 2.Reading of the aforesaid question would unequivocally goes to show that it is in relation to the transfer fee received by the society. The question of chargeability of tax was the subject matter of consideration before the Division Bench of this Hon’ble Court in assessee’s own case, lead case being Income Tax Appeal No.931 of 2004 , wherein the issue was considered in detail and the Division Bench of this Court was pleased to record a finding that the transfer fee received by the Society was not chargeable to tax on the principles of mutuality. Since the issue raised in these appeals is squarely covered by the Division Bench of this Court, the appeals are liable to be dismissed for the reasons recorded therein. The question is accordingly answered in favour of the assessee and against the revenue. (J.P. Devadhar, J.) (V.C. Daga, J.)