ITO 16(1)(1), MUMBAI vs. GRAND PARADI CO OP HSG SOC LTD, MUMBAI

This is an appeal by the Revenue preferred against the order of the Ld. CIT(A)-27, Mumbai dated 23.9.2013 pertaining to Assessment year 2010-11.

The sole grievance of the Revenue is that the Ld. CIT(A) erred in deleting the addition of Rs. 18.50 lakhs received by the assessee as transfer fee. It is the claim of the Revenue that such transfer fee is not covered by the principle of mutuality and therefore taxable.

At the very outset, the Counsel for the assessee drew our attention to the decisions of the Tribunal in assessee’s own case for A.Y. 2005-06 in and for A.Y. 2009-10 in ITA No. 230/M/2013. It is the say of the Ld. Counsel that this issue has been decided in favour of the assessee and against the Revenue by the Tribunal (supra).

The Ld. Departmental Representative could not bring any distinguishing decision in favour of the Revenue.

We have carefully perused the facts in issue and the decisions of the Tribunal. We find force in the contention of the Ld. Counsel. We find that in both the decisions of the Tribunal, the Tribunal has followed the decision of the Hon’ble High Court of Bombay in the case of Sind Co.Operative Housing Soc. Vs ITO 317 ITR 47 and Shyam Co- Operative Housing Society Vs CIT in Income Tax Appeal Nos. 92,93 & 206 of 2008 dated 17.7.2009 which has also been followed by the Ld. CIT(A). We, therefore decline to interfere with the findings of the Ld. CIT(A).

In the result, the appeal filed by the Revenue is dismissed.