TMI Blog2012 (6) TMI 468X X X X Extracts X X X X X X X X Extracts X X X X ..... ple of mutuality squarely applies to the case of the respondent-association for the transactions carried on by them. Scope of section 28(iii) - held that:- the above provision does not apply to the facts of this case. The only other exception for assessment of mutual benefit concerns is only the income falling under section 2(24)(vii) which provides for assessment of profits and gains of any business of insurance carried on by a mutual insurance company or by a co-operative society, computed in accordance with section 44 or any surplus taken to be such profits and gains by virtue of the provisions contained in the First Schedule to the Act. - This provision has no application so far as the respondent association is concerned. - Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n though the first appellate authority also confirmed the levy and demand of tax, the Tribunal accepted the respondent's claim for exemption on the principle of mutu- ality and declared their eligibility, against which these appeals are filed. 3. The Tribunal allowed the appeals by following various decisions of the Supreme Court, particularly in CIT v. Bankipur Club Ltd. reported in [1997] 226 ITR 97 (SC), Chelmsford Club v. CIT reported in [2000] 243 ITR 89 (SC) and CST v. Sai Publication Fund reported in [2002] 258 ITR 70 (SC). It is clear from the judgments of the Supreme Court relied on by the Tribunal that the clubs were engaged in activities similar to the one carried on by the respondent-assessee. While the clubs purchase food a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to above. 4. The next question to be considered is with reference to the scope of section 28(iii) heavily relied on by the appellant-Department. For easy reference, section 28(iii) is extracted hereunder : "28. Profits and gains of business or profession.-The following income shall be chargeable to income-tax under the head 'Profits and gains of business or profession',- . . . (iii) income derived by a trade, professional or similar association from specific services performed for its members." 5. Standing counsel for the Revenue relied on the decision of the Supreme Court in CIT v. Calcutta Stock Exchange Association Ltd. reported in [1959] 36 ITR 222 (SC), wherein the Supreme Court has clarified the mean- ing of "specific se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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