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2016 (10) TMI 523 - AT - Income TaxDeduction u/s.80IA eligibility - Concept of mutuality – taxability of excess of income over expenditure - Held that:- The activities of the assessee are identical to the activities undertaken by Common Effluent Treatment Plant (Thane-Belapur Association [2010 (6) TMI 52 - BOMBAY HIGH COURT ] wherein held that the income of the assessee is contributed by its members. The assessee has been formed specifically with the object of providing a common effluent facility to its members. The income is not generated out of dealings with any third party. The entire contribution originates in its members and is expended only in furtherance of the objects of the association, for the benefit of the members. On these facts, both the Commissioner (Appeals) and the Tribunal were justified in coming to the conclusion that the surplus so generated falls within the purview of the doctrine of mutuality and was not exigible to tax.”. - Decided in favour of the assessee and against the Revenue
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