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2020 (4) TMI 111 - AT - Income TaxPrinciple of Mutuality - Exemption u/s 11 - Charitable activity u/s 2(15) - NASSCOM is the premier trade body and the chamber of commerce of the IT-BPO industries in India. - exemption u/s 11 & 12 denied to the assessee and that the assessee society was to be assessed as normal AOP (Association of Person) - AO stated that it can be seen that assessee itself has bifurcated its income in two streams first stream of income from members is claimed as exempted on the "Principle of Mutuality" and second stream of income earned from services provided to both the non- members as well as members - HELD THAT:- The assessee has offered the income for taxation received from non-members but the assessee has claimed the exemption of income of ₹ 8.32 crores which is received from the members of the association on the principle of mutuality, The assessee has also relied on various case laws on the principle of mutuality. It is seen that the income Of the assessee received from one non-members has been offered for tax by the assessee itself after the amendment in section 2(15) for AY. 2009-10 onwards. It is only the membership fees from its own members which has been claimed as exempt by the assessee on the principle of mutuality. The assessee is a trade association of software industries and its main objective is to promote and protect the interest of its members. So the membership fees received by the assessee from its own members comes within the meaning of principle of mutuality and as such the net income of the assessee from its own member is exempt from tax. The case laws cited by the assessee as above also support the case of the assessee on the principle of mutuality, After considering all the facts and circumstances of the case and keeping in view the order of my predecessor for AY. 2009-10, benefit on principle of mutuality be granted to the assessee on membership fees from members only. Issue to be decided in favour of assessee as relying on own case [2019 (11) TMI 339 - ITAT DELHI] and [2019 (10) TMI 123 - ITAT DELHI]
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