Case Law Details
Twinstar Jupiter Co-op. Hsg. Soc. Ltd. Vs ITO (ITAT Mumbai) – In the case of Sindh CHS Ltd (supra) the Hon’ble High Court made it clear that in the said case the bye-laws provide that the amount has to be paid by the transferor Member. In the present case, nowhere it is the case of the A.O. that there is a provision that only the transferor has to bear the amount of the transfer fees. We, further, find that nowhere it is the case of the A.O. that no commerciality is involved in the objects or activities of the assessee society as the assessee has credited the amount to the general reserve funds to be used for the repairs and maintenance of the society. Their Lordships have also considered the Notification given by the Government of Maharashtra and the reference made is to only to extent of argument of the parties to the on Govt notification dated 9.8.2001. As per the notification dated 10.12.1989 if the bye-laws are amended then only the society could not charge what was set out in the notification.
In the present case, ultimately, the transfer fee received from the Members has merged with the common pull of funds and there is no commercial motive. In our opinion, assessee’s case is squarely covered by Sindh CHS Ltd. (supra). We, accordingly decide this issue in favour of the assessee
ORDER
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