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2021 (7) TMI 636 - AT - Income TaxConcept of mutuality - Payment of interest / compensation to the members - Enhancing the assessed income u/s 251(2) - Interest income earned from bank by holding that the assessee is a mutual society and that non-mutual income is to be taxed in its entirety - assessee-co-operative society is essentially a mutual benefit society with close identity of contributors and beneficiaries - HELD THAT:- As decided in own case [2021 (4) TMI 1077 - ITAT BANGALORE] we hold that the assessee is entitled to the claim of deduction of interest expenditure being the amount paid to the members of the assessee-society. Allowability of capital expenditure - HELD THAT:- The learned AR fairly conceded that the expenditure enumerated above are capital in nature. In view of the submission of the learned AR, the expenditure is held to be capital in nature. Accordingly, this issue is decided against the assessee.
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