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2015 (9) TMI 1717 - AT - Income TaxAssessment of trust - “Principle of mutuality" - amount had received as non-occupancy charges by the society from members and not from the occupants - “principle of mutuality‟ to the non-occupancy charges received by the cooperative housing society - HELD THAT:- Similar issue was adjudicated by the Tribunal in the assessee‟s own case for the AY 2003-2004 - After hearing both the parties and on perusal of the said order of the Tribunal (supra), find vide paras 17 and 18, the assessee was given relief on account of non-occupancy charges received by the assessee in that AY 2003-04. Considering the commonality of the issue and binding nature of the coordinate Bench decision, ground no.1 raised by the Revenue is dismissed and to that extent the order of the CIT (A) is fair and reasonable and it does not call for any interference. “Principle of mutuality" to the interest amount received from the bank on the FDs - HELD THAT:- Heard both the parties and perused the orders of the Revenue Authorities as well as the cited judgment of the Hon‟ble Supreme Court in the case of Bangalore Club [2013 (1) TMI 343 - SUPREME COURT] - On perusal of the said judgment of the Apex Court, we find that the said judgment is relevant in this regard, wherein it was held that “The principle of mutuality relates to the notion that a person cannot make a profit from himself. The concept of mutuality has been extended to defined groups of people who contribute to a common fund, controlled by the group, for a common benefit. Any amount surplus to that needed to pursue the common purpose is said to be simply an increase of the common fund and as such neither considered income nor taxable”. Applying the above ratio to the factual matrix of the present case, there is no dispute on the fact of receiving interest from the “Bank of India‟ and the said “bank is not a member of the club’, so that the “principle of mutuality‟ does not apply. Therefore, considering the same, the decision taken by the CIT (A) in this regard requires to be reversed - Ground no.2 raised by the Revenue is allowed.
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