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2016 (9) TMI 1330 - AT - Income TaxReopening of assessment - assessee being a mutual benefit organization, was not entitled for exemption u/s 11 in respect of interest income and rental income - Held that:- It is undisputed that the receipt, other than the interest income and rental income, is from the members of the club and, therefore, would fall within the ambit of mutuality as defined by Hon’ble Apex Court in the case of Bankipur Club Ltd. (1997 (5) TMI 392 - SUPREME Court). The Assessing Officer had also accepted that the assessee club is entitled to benefit of mutuality. In our opinion, the view taken by the Assessing Officer is well –supported by the decision of Hon’ble Apex Court in the case of Bankipur Club Ltd. (supra), Chelmsford Club (2000 (3) TMI 4 - SUPREME Court) as well as Bangalore Club (2013 (1) TMI 343 - SUPREME COURT). Therefore, on this point, we reverse the order of learned CIT(A) and restore that of the Assessing Officer i.e., all receipts of the assessee club except receipt from interest as well as rent is out of the purview of taxation on account of the doctrine of mutuality. Insofar as interest income and rental income are concerned, we, respectfully following the above hold that the same cannot be said to be governed by the concept of mutuality because the receipt is not from the members of the club. Accordingly, the assessment of these two incomes in the hands of the assessee is upheld.
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