TMI Blog2015 (9) TMI 1717X X X X Extracts X X X X X X X X Extracts X X X X ..... mmonality of the issue and binding nature of the coordinate Bench decision, ground no.1 raised by the Revenue is dismissed and to that extent the order of the CIT (A) is fair and reasonable and it does not call for any interference. Principle of mutuality to the interest amount received from the bank on the FDs - HELD THAT:- Heard both the parties and perused the orders of the Revenue Authorities as well as the cited judgment of the Hon‟ble Supreme Court in the case of Bangalore Club [ 2013 (1) TMI 343 - SUPREME COURT] - On perusal of the said judgment of the Apex Court, we find that the said judgment is relevant in this regard, wherein it was held that The principle of mutuality relates to the notion that a person cannot mak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rges by the society from members and not from the occupants? 2. Whether on the facts and circumstances of the case and in law, the Ld CIT (A) was justified in deleting the addition of FD interest of ₹ 3,87,126/- holding that it is covered under the principle of mutuality and not following the decision of the Hon‟ble Apex Court in the case of Bangalore Club? 2. Briefly stated relevant facts of the case are that the assessee filed the return of income declaring the total loss of ₹ 37,025/-. The case was selected for scrutiny by CASS and the assessment was completed u/s 143(3) of the Act and the assessed income was determined at ₹ 13,16,820/- which includes the disallowances viz (i) ₹ 9,66,716/- on acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tuality‟ to the interest amount of ₹ 3,87,126/- received from the bank on the FDs. In this regard, CIT (A) granted relief to the assessee relying on the coordinate Bench decision in the case of Bombay Gymkhana Ltd vs. ITO, 115 TTJ 639 (Mumbai) apart from others. Aggrieved with the said relief Revenue is in appeal. 6. Before the Tribunal, Ld DR for the Revenue brought my attention to the judgment of the Hon‟ble Supreme Court in the case of Hon‟ble Supreme Court in the case of Bangalore Club Vs Commissioner of Income-tax (SC) 350 ITR 509 and the said receipts are outside the scope of principle of mutuality and therefore, the decision taken by the CIT (A) is not correct. 7. On the other hand, Ld Counsel for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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