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2009 (11) TMI 586 - HC - Income TaxExemption - Principle of mutuality and no man can trade with himself - The very question came up for consideration before this court in a batch of cases rendered in Madras Gymkhana Club v. Deputy CIT reported in (2009 -TMI - 34308 - MADRAS HIGH COURT) - The Division Bench, after a detailed analysis of the question involved took the view that investment of surplus funds by such clubs with some of the member banks and institutions in the form of fixed deposits and securities not with a definite idea of using the same in any specific projects for further development of the infrastructural facilities of the clubs failed to satisfy the concept of mutuality and therefore the benefit of exemption cannot be extended to the interest income - Hence, the question of law has been answered against the assessee and in favour of the Revenue.
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