TMI Blog2010 (5) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... ith anybody outside the body then any surplus remaining to such a body is not to be regarded as a profit. Accordingly, if the participators to the fund are also the contributors and such an identity is established then the test of mutuality is fulfilled - The school is being run by the Society for the children of its members and any surplus remaining of the school attract the principle of mutuality. Any dealing done by the assessee Society or by the school with the non-members would not attract the principle of mutuality - Once the Assessing Officer has excluded Rs. 15,00,000/- received from Punjab Government on account of infrastructure fund donation then it follows that donations received by the assessee Society for development account fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agore Public School in the premises of the Society itself. The Society filed its return on 31.10.2002 declaring nil income. As per the audit report along with profit and loss account, the Society shown to have earned profit of Rs. 22,15,687/-. The net profit from Tagore Public School is shown as per profit and loss account as Rs. 30,95,555/-. The amount of profit of Rs. 22,15,687/- shown in the return was claimed to be exempt under Section 80-P. The revenue has alleged that income from school was neither offered for taxation nor exemption under the Act was ever sought in the preceding years and it was not exempted under Section 10(23C)(iiiad) of the Act. 3. The Assessing Officer completed assessment on 18.10.2006 under Section 143(3)/147 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing amounts a categorical finding of fact has been recorded by referring to the copies of the receipts issued by the assessee Society that these amounts were one time payments received on account of donation for development account. The Assessing Officer had excluded Rs. 15,00,000/- from the income of the assessee Society being the amount received from the Punjab Government on account of infrastructure fund donation. On the same reasoning the one time donation received by the assessee Society for development account should have been considered as capital receipt and not as its income. On the basis of the aforesaid finding of fact, the Assessing Officer was directed to exclude from the income of the assessee Society the amount other than Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xempt on the principle of mutuality in respect of the assessment years 1978-79, 1979-80 and 1990-91. The income is received from running the school by the assessee Society. The school is being run by the Society for the children of its members and any surplus remaining of the school attract the principle of mutuality. Any dealing done by the assessee Society or by the school with the non-members would not attract the principle of mutuality. The assessee Society has been given the benefit of mutuality in case it is found to be so. 6. The other issue is regarding the direction issued to the Assessing Officer to allow carry forward loss/depreciation in respect of assessment years 1999-2000 and 2000-01. The assessee Society submitted that aft ..... X X X X Extracts X X X X X X X X Extracts X X X X
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