CHANCELLOR COURT CO-OPERATIVE HOUSING SOCIETY,MALBAR HILL vs. ADDL/JCIT (A)-5 KOLKATA, KOLKATA

ITA 1888/MUM/2025Status: DisposedITAT Mumbai15 May 2025AY 2019-20Bench: SHRI SANDEEP SINGH KARHAIL (Judicial Member), SHRI BIJAYANANDA PRUSETH (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that income generated from members of a co-operative housing society, collected for providing services and amenities, falls under the principle of mutuality and is not taxable, provided no business activity with non-members is conducted.

What were the facts?

The assessee, a co-operative housing society, filed its return declaring 'Nil' income after claiming deduction. The CPC processed the return and made an addition of Rs. 8,00,142/- towards business income, which was also disallowed by the CIT(A) for AY 2018-19.

What were the issues?

Whether the surplus income of a co-operative housing society derived from its members falls under the principle of mutuality and is thus not taxable.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(1),Section 143(1)(a)(ii),Section 80P(2)(d)

AI-generated summary — verify with the full judgment below

Before: SHRI SANDEEP SINGH KARHAIL & SHRI BIJAYANANDA PRUSETH

For Appellant: Shri Pawan Choudhary, AR
For Respondent: Smt. Smitha V. Nair, CIT-DR
Hearing: 13/05/2025Pronounced: 15/05/2025

PER BIJAYANANDA PRUSETH, AM: These two appeals by the assessee emanate from the orders passed under section 250 of the Income-tax Act, 1961 (in short, ‘the Act’) dated 20.01.2025 and 22.01.2025 by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short, ‘CIT(A)’] for the assessment years (AYs) 2018-19 and 2019-20 respectively. Since the facts and grounds raised by the appellant are similar, with consent of parties, both cases were heard together and a common order is passed for sake of conve

The order continues below.

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