TMI Blog2009 (11) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed analysis of the question involved took the view that investment of surplus funds by such clubs with some of the member banks and institutions in the form of fixed deposits and securities not with a definite idea of using the same in any specific projects for further development of the infrastructural facilities of the clubs failed to satisfy the concept of mutuality and therefore the benefit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the surplus funds raised from contribution of several members of the appellant-club even when the benefit of interest derived is utilised by several members of the appellant-club ?" 2. The appellant-company is incorporated under the Companies Act with the object to promote social interaction among the members of the club, their families and friends to provide club house facilities for spor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 143(3) of the Income-tax Act determining the total disclosed income at Rs.17,70,194 and tax thereon at Rs. 7,24,895 by treating the interest income received by the assessee from the deposits with the bank as income received from non-members and hence will not be considered as mutual income. The Commissioner of Income-tax (Appeals) by a common order dated October 23, 2007 for the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on came up for consideration before this court in a batch of cases rendered in Madras Gymkhana Club v. Deputy CIT reported in [2010] 328 ITR 348 (Mad) ; [2009] 28 DTR Judgments page 9. (T. C. Nos. 397 to 404 of 2008 dated July 30, 2009). The Division Bench, after a detailed analysis of the question involved took the view that investment of surplus funds by such clubs with some of the member banks ..... X X X X Extracts X X X X X X X X Extracts X X X X
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