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TMI Blog2008 (4) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... ivities/arrangements among the members of the club. - Held that: - The principle of mutuality could be applied only if the interest was earned for advances/facilities of loan given to the members of the club. The assessee had claimed exemption in respect of interest income where source of receipt was Bank and not the members of the club. In Chelmsford Club v. CIT (2000 -TMI - 5787 - SUPREME Court) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars 2003-04 and 2004-05. Grievance raised by the assessee for both assessment years was that the Commissioner of Income-tax was not justified in upholding the additions of Rs.2,55,182 for the assessment year 2003-04 and Rs.2,06,090 and Rs.25,598 for the assessment year 2004-05 as made by the Assessing Officer. In the returns of income for both the assessment years the assessee, on the principle of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in CIT v. Bankipur Club [1997] 226 ITR 97, was wrongly relied upon by the Assessing Officer for the reason that the question of taxability of interest was never subject-matter of appeal before the Apex Court and the issue had been referred to Larger Bench. 4. Learned counsel appearing for the respondents stated that matter had already been decided by the ITAT, Amritsar Bench in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court], the Apex Court held that there must be complete identity between the contributors and the participators. It was stated that in order to bring income within the purview of doctrine of mutuality, three conditions must exist, namely,- (i) the identity of the contributors to the fund and the recipient from the fund; (ii) the treatment of the company though incorporated as a mere entity fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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