Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2012 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (7) TMI 76 - HC - Income TaxApplicability of principle of mutuality - consumer co-operative society, engaged in trading in consumer goods to its members as well as non-members - Held that:- Principles of mutuality have been recognized in the Act in relation to trade, professional or similar associations which are not profit making bodies. A consumer co-operative society, which sells commodities of daily use to members and nonmembers at the same price and makes profits out of such business, cannot be brought u/s 44A. Such associations would be covered u/s 80P for exemption of income, when it fulfills the criteria mentioned in section 80P. In present case, assessee is involved in commerciality and that from the moneys received from the members, services are offered to members and non-members, in the nature of profit sharing by the members and not for the purposes of any conveniences to the members. The amount which comes to the society is distributed amongst the members as dividend. The doctrine of mutuality cannot be applied to the Assessee. Order of Tribunal set aside and quashed.
|