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2018 (11) TMI 1114 - ITAT HYDERABADAddition towards income from other sources for interest income from bank - assessee is a Mutual benefit society - Income earned as exempt from tax on the principle of mutuality - Held that:- Even though the bank was having a corporate membership with the said club/society, the principle of mutuality does not arise. In assessee's case, the bank is not even a member of the society. The nature of the transaction between the assessee and the bank would disqualify application of the principle of mutuality. Therefore, the transactions with the bank who is not even a member of the society cannot be considered as a transaction for which principles of mutuality will apply. Not only on the principles laid down in the subject but also on the fact that the interest was received from a non-member, the principles of mutuality do not apply. The orders of the AO and CIT(A) are accordingly upheld both on facts as well as on principles of law. Thus find no merit in assessee's grounds and accordingly, the same are dismissed. - Decided against assessee.
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