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5 Whether on the facts and circumstances of the case and in law, the CIT(A) has erred in deleting the addition of Rs. 36,56 800/- received as transfer fees under the Head income from other sources' ignoring the decision of the Hon'ble Special Bench, in Walkeshwar Triveni Co-Op Hsg. Society 83 ITO 159 (Mum) (SB), wherein it was held that transfer fees received from the transferee members was not exempt from tax on the ground that at the time of payment of fees, he was not a member of the society and if an amount is received more than what is chargeable under by laws or Government directions, M/s. Laxmi Finance and Leasing Company Co-operative Society Ltd., the society is bound to repay the same and if retains the same, it will be in the nature of profit making and that amount will be chargeable to tax. Further, the Ld. CIT(A) ignored the decision of the Hon'ble Bombay High Court in Presidency CHS Ltd (1995) 216 ITR 321 (Bom), which was followed by the Hon'ble ITAT in Hatkesh Co-op Hsg. Soc. Ltd [TS-256-ITAT-2013(Mum)] Dated. 21.10.2013, holding tha 6 Whether on the facts and circumstances of the case and in law, the CIT(A) has erred in deleting the addition on account of transfer fee without appreciating the fact that amount was received from non-members which rapture the basic concept of mutuality

M/s. Laxmi Finance and Leasing Company Co-operative Society Ltd., Sr Nature of Receipts Taxed under the Head No. receipts 1 Contribution 7,53,30,000/- Tax free under the from members concept of mutuality 2 Interest 3,29,31,141/- Taxed under Other sources 3 Other Income 25,86,932/- Taxed under Other sources 4 Lease Rent 4,05,69,408/- Taxed under House Income property

5. There are two issues involved in this appeal. Firstly, in respect of the properties let out on lease by the assessee from which rental income is earned which has been taxed by the Assessing Officer by taking higher rent as ALV in respect of all the properties. Secondly, transfer fee of Rs.36,56,800/- was claimed as exempt by the assessee on the principle of mutuality which has been added to its income by the ld. AO after holding that the concept of mutuality is restricted to collection of maintenance charges from its 48 members who enjoyed the benefits from the society. The ld. AO has held that there is no mutuality when the vacant premises are sold to a third party at the market rates and not at the cost incurred by the assessee for its construction. He has accordingly, added the amount of transfer fee to the income of the assessee under the head 'income from other sources.' M/s. Laxmi Finance and Leasing Company Co-operative Society Ltd.,