| COURT: | Bombay High Court |
| CORAM: | Mridula Bhatkar J |
| SECTION(S): | 28, 4 |
| GENRE: | Domestic Tax |
| CATCH WORDS: | mutuality, transfer fees |
| COUNSEL: | Nitin P. Deshpande |
| DATE: | August 31, 2018 (Date of pronouncement) |
| DATE: | September 7, 2018 (Date of publication) |
| AY: | - |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| A co-operative housing Society is not expected to indulge into profiteering business from its members. Transfer fees cannot be charged under the pretext of "voluntary donation". Amount which is accepted above permissible limits towards transfer fee is illegal and taxable as income in the hands of the society | |
The Society is not expected to indulge into profiteering business from the members and if such amount is earned, then it is taxable under the law. There is no bar for any member to pay donation to the Society, however, it should be voluntary without any compulsion and coercion. No manner the transfer fees can be charged under the pretext of donation
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