Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (9) TMI 1002 - AT - Income TaxPrinciple of mutuality - receipt by an Association from its members - Held that:- Taxability of the receipts under the Income Tax Act, 1961(Act) will have to be tested on the applicability of the principle of mutuality. Once it is found that principle of mutuality applies then the receipt in question cannot be brought to tax as one cannot make profit out of himself. The restriction on the quantum of receipt by an Association from its members prescribed by any other law regulating the relationship between members and its Association will not be relevant while taxing receipts under the Act. In other words principle of mutuality will not cease to exist in respect of receipts from members by an Association beyond the quantum restricted by any law regulating the relationship between members and its Association. In view of the aforesaid decisions, we do not find any merit in this appeal by the revenue and the same is dismissed.
|