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2018 (12) TMI 1317 - AT - Income TaxExemption being the surplus income after deducting personal expenses declared under the head Income from Other Sources - doctrine of mutuality - Held that:- Fund was contributed by the members for providing financial assistance to the members and only surplus fund which were not required for the time being were kept in the bank for safe custody mainly and not for earning interest income. In the present case, the facts are totally different. The income in dispute in the present case are 1) Pay & Park Charges, 2) Rent from Vodafone tower, 3) Rent from BSNL tower, 4) Rent from Idea Tower and 5) interest on Fixed Deposit. The first four incomes i.e. Pay & Park Charges and rent from Vodafone, BSNL and Idea towers cannot be considered to be covered by doctrine of mutuality. Regarding interest on Fixed Deposit also, this is not the claim of the assessee that the fund which was used for earning such interest income on Fixed Deposit was mainly for the purpose of providing financial assistance to the members and only surplus fund kept with bank for safe custody and not for earning interest income and earning of interest income is incidental. Hence in the facts of present case, this judgement of Hon'ble Karnataka High Court is also not applicable. Hence in my considered opinion this judgement of Hon'ble Karnataka High Court rendered in the case of Canara Bank Golden Jubilee Staff Welfare Fund Vs. DCIT (2008 (7) TMI 239 - KARNATAKA HIGH COURT) is not applicable in the facts of present case. The judgement of Hon’ble Apex Court rendered in the case of Bangalore Club Vs. CIT [2013 (1) TMI 343 - SUPREME COURT] is squarely applicable in the present case and as per this judgement of Hon’ble Apex Court, the issue is covered against the assessee and the judgement of Hon'ble Karnataka High Court rendered in the case of Canara Bank Golden Jubilee Staff Welfare Fund Vs. DCIT (supra) is not applicable in the present case and hence, by respectfully following the judgement of Hon’ble Apex Court rendered in the case of Bangalore Club Vs. CIT (supra), I decline to interfere in the order of CIT(A). - decided against assessee
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