Commissioner of Income Tax vs Star Estates Management

Relevant to the Assessment Year 1984-SS, the following questions have been referred for our opinion: 1. Whether, on the fuels and in the circumstances of the case the ITAT was correct in law in holding that the sum of RS. 1,79,588/- being 25% of the funds collected under the head Common Assets Repl. Fund and subsequently transferred to the Flat Owners Common Replacement Funds Account is not a trading receipt and as such not chargeable to tax?

Whether, on the facts and in the circumstances of the case, the ITAT was correct in law in holding that, the sum of Rs.41,359/- collected by the Assessee as a non-refundable security deposit is not a trading receipt and as such cannot he brought to tax?

On 31st July, 2007 learned counsel for the Assessee had staled that the Tribunal merely followed an earlier order passed in respect of the assessment year 1983-84. He now submits that to his best knowledge, that order has been accepted by the Revenue and the Assessee has not received any notice of further proceedings in respect of the assessment year 1983-84.

Learned counsel for the Revenue is unable to tell us whether any further proceedings were taken up in respect of the assessment year 1983-84 despite time having been granted.

Under the circumstances, we see no reason to disbelieve the statement made by learned counsel for the Assessee and we return the reference unanswered. The Reference is disposed of accordingly.