Dismissing the appeal of the revenue the Court held that ; Receipts by Co -operative society form its members ie. Non-occupancy charges , transfer charges common amenity fund charges and other charges are exempt from income -tax Act based on the principle of mutuality . The notification dated 9 , 2001 issued under section 79A of the Maharashtra Co -operative Societies Act, 1960 is applicable only to co -operative housing societies and has no application to premises society which consist of non -residential premises .
ITO v. Venkatesh Premises Co -operative Society Ltd ( 2018) 402 ITR 670/ 163 DTR 465/301 CTR 514/ 254 Taxman 313 ( SC) Editorial: From the judgement of Bombay High Court in ITO v. Venkatesh Premises Co -operative Society Ltd (ITA No 680 of 2009 dt 11-1-2010) Mittal Court Premises Co -operative Society Ltd v. ITO ( 2010) 320 ITR 414 ( Bom) (HC) , and CIT v. Shree Parleshwar Co -op- Housing Society Ltd ( 2017) 10 ITR-OL 202 ( Bom) (HC) is affirmed
S. 4 : Charge of income-tax – Mutuality- Receipts by Co -operative society form its members ie. Non-occupancy charges , transfer charges common amenity fund charges and other charges , are exempt from income -tax Act based on the principle of mutuality [S. 2(24), Maharashtra Co -operative Societies Act , 1960 , S. 79A ]