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2015 (9) TMI 543 - AT - Income TaxInterest received from bank deposits/balances - whether is covered by ‘Principles of mutuality’ or not? - assessee is a housing co-operative society and has claimed certain incomes as exempt on ‘Principles of mutuality - Held that:- Since jurisdictional High Court in the case of Secunderabad Club [2011 (8) TMI 752 - Andhra Pradesh High Court] has clearly held that interest received from third parties cannot be exempted under the ‘Principles of mutuality’, we reject assessee’s contentions, as the interest earned is not from the Members but from the third person i.e., bank in which assessee’s surplus funds are placed. Since the income received is from third party, we are of the opinion that ‘Principles of mutuality’ does not apply to the present facts. There is no merit in assessee’s grounds. Accordingly, they are rejected - Decided against assessee.
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