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2012 (9) TMI 327 - AT - Income TaxPrinciple of Mutuality - CIT(A) allowed it - revenue appeal - Held that:- As decided in assessee's own case for the assessment year 2006-07 on similar facts the Tribunal held that the assessee is a mutual concern as there is complete identity between the contributors and participators - the assessee is a society of industries of hazardous nature and the object is the treatment of waste produced by these industries to keep environment clean. The observation of the AO that it is not mentioned in the return that the principle of mutuality applies to the assessee has been held having no merit because what is important is the actual conduct of the assessee even if it is not mentioned in the return, it makes no difference to the status of the assessee - as predominant object of the assessee has been found the welfare of its members and in the process if any income is received from a person other than the members it would not change the status of the assessee - in favour of assessee. Addition on account of membership contribution - CIT(A) deleted it - Held that:- As decided in assessee's own case for the assessment year 2006-07 on similar facts CIT(A) has deleted the addition made on account of membership subscription on the basis that the assessee is covered by the doctrine of mutuality - as doctrine of mutuality proved in favour of assessee addition need to be deleted - in favour of assessee. Interest earned on fixed deposits made out of subscription money received - CIT(A)treated it as income of the assessee - Held that:- As decided in assessee's own case for the assessment year 2006-07 the Tribunal held that the decision of CIT(A) in respect of treatment of interest income are contradictory. He had deleted interest income of Rs. 1,34,234/- on the basis of concept of mutuality but had upheld the addition of interest income of Rs. 247113/- and Rs. 23,506/- - thus following the same direct the AO to delete the addition on interest on fixed deposit made out of the subscription money received from subscribers - in favour of assessee.
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