VIJAYNAGAR CO-OP HOUSING SOCIETY LTD. Vs. ITO

JUDGEMENT

(1.) THE above referred appeals have been filed by the assessee arising out of a consolidated order of Commissioner (Appeals) -XX, Mumbai, dated 25 -2 -2003, relevant for the assessment years 1997 -98 to 1999 -2000, the years under appeal. Ground of appeal being argumentative and illustrative hence concussed for all the years separately. The grounds being identical and the issue raised is common, therefore, decided by this common order.

(2.) FOR all the three years ground No. I reads as follows :

(3.) AS per the assessment order passed under section 143(3) read with section 147 for the years under consideration it was noticed by the assessing officer that some taxable income has escaped assessment. Accordingly, assessments were reopened under section,147 by issuance of notice under section 148. The assessee is a co -operative housing society. It was noticed that besides receiving contribution from its members, this society also derived income of rent from a community hall on jetting out to outsiders. The next source of income as mentioned by the assessing officer was received from the sites of hoardings; given for advertisement purpose. Assessing Officer has also observed that the transfer fees received on account of transfer of flats was also subject to tax. It was also mentioned that the provisions of section 14A ought to be applied because no deduction could be allowed in respect of expenditure incurred by the assessee in relation to the income which did not form part of the total income. With these observations, the assessing officer has reopened the assessments and taxed the co -operative housing society accordingly.