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TMI Blog2016 (10) TMI 1381X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee in respect of not applying and adhering to the following facts and principles: (i) Exemption u/s 11 by virtue of registration u/s 12AA granted by CIT, Ghaziabad vide order NO.03/ 2007 - 08 w.e.f 24.04.2007 (enclosed as annexture 1A) . (ii) Doctrine of Mutuality accepted by Hon'ble ITAT vide order NO.3708/2008 dated 31.08.2009 for the assessment year 2004-05 (enclosed as annexture 1B). 2. The learned Assessing Officer and also the learned- ClT (A) grossly erred in adding to the income of the assessee, the interest received from Bank, interest received on IT refund and interest. received from Cable Operator totaling Rs. 18,18,599, simply because the interest income was received from 3rd parties. 3. The learned Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee stated that the similar issue involved in the present appeal being ground no. 1 and 2 has already been adjudicated and decided in favour of the assessee by the ITAT decision dated 31.8.2009 passed in ITA No. 3708/Del/2008 (AY 2004-05) in assessee's own case. 4.1 With regard to ground no. 3, Ld. Counsel of the assessee has stated that Assessing Officer and the CIT (A) grossly erred in not considering and thereby allowing the expenses of Rs. 28,70,532 which were in the nature of recurring, office and administrative expenses incurred in the course of earning income. He further stated that details of all expenses incurred during the relevant previous year in the course of earning the income were filed, but they were not considered. 5. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision of the Hon'ble High Court of Karnataka in the case of Bangalore Club shows that the Hon'ble High Court has considered the decision of the Hon'ble Supreme Court in the case of Chelmsford Club reported in 243 ITR 89 (S.C.) and has held as follows "In the said judgment the Division Bench has made it very clear that income earned from an outside agency on interest or securities from the bank would not be covered on the principles of mutuality for claiming exemption from tax. This judgment squarely applies to the facts of this case. On the facts of this case and in the light of the legal principles it is clear to us that what has been done by the club is nothing but what could have been done by a customer of a bank. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue is as to whether the interest income derived by the respondent/ assessee on the contributions made by the members of the welfare society is to be taxed in the hands of the society or not. Since in our view, the issue raised by the Revenue is legal and is no more res integra, we deem it unnecessary to state the facts. Suffice it to note that while completing assessment on the respondent assesee, a co-operative society comprising of the employees of the bank, the AO had held that the interest income earned by the society on the contributions received from the members was not exempt on the principle of mutuality. 3. The issue with regard to the concept and principle of mutuality has been elaborately examined by the apex Court in Chelmsf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue had been held in favour of the assesee by the Hon 'ble Jurisdictional High Court of Delhi, respectfully following the decision of Hon'ble Jurisdictional High Court in the case of All India Oriental Bank of Commerce Welfare Society referred to (supra), the AO is directed to grant the assessee the exemption in respect of the interest on the bank F.D.Rs of Rs. 13,25,112/- by applying the principle and doctrine of mutuality. As the issue has been held in favour of the assessee the other contentions raised are not adjudicated upon. 7. In the result the appeal of the assesee is allowed." 6.1 Respectfully following the above precedent of the ITAT in assessee's own case for the assessment year 2004-05, the issue no. 1 & 2 are decided in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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