ITO WARD - 2(1), GHAZIABAD vs. WINDSOR & NOVA APARTMENT OWNER ASSOCIATES, GHAZIABAD

The AO treated the maintenance charges received by the assessee society as income of the assessee for the instant year. The ld. CIT(A) deleted the addition on the grounds that in the next year, the Assessing Authority have accepted the principle of mutuality and held that the assessee was eligible for the benefit of doctrine of mutuality and no demand was raised on the similar issue.

The AO levied penalty of Rs.10,000/- u/s 271(1)(b) of the Income Tax Act, 1961 and the ld. CIT(A) dismissed the appeal of the assessee being infructuous as the assessee has already deposited the penalty of Rs.10,000/-.

The ld. CIT(A) confirmed the penalty levied u/s 271(1)(c) of Rs.1,71,855/- on the grounds that the addition has been confirmed to that extent.

The AO allowed the subscription fees invoking the doctrine of mutuality and taxed the amounts received of Rs.6,60,000/- on disposal of waste and advertising income. The ld. CIT(A) enhanced the addition to Rs.6,69,783/-.

At the outset, the ld. DR submitted that the ld. CIT(A), Noida do not exercise the jurisdiction over the cases of Ghaziabad, the appeals ought to have been passed by ld. CIT(A) who has the jurisdiction as per the jurisdictional order of the CBDT. Hence, the matters are being remanded back to the file of the ld. CIT(A), Ghaziabad to adjudicate the matter afresh in accordance with the provisions of the Act.

In the result, the appeals of the revenue are allowed for statistical purpose.