9911796707
TMI Blog2012 (9) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... account of membership contribution. (ground No. 2). 2. The assessee on the other hand has questioned first appellate order whereby the Ld. CIT(A) has treated the amount of interest of Rs. 4,99,371/- earned on fixed deposit as not exempt under the doctrine of mutuality. 3. At the outset the LD. AR pointed out that the issues raised in the present appeals are fully covered by the decision of Delhi Bench of the Tribunal in the case of assessee itself for the assessment year 2006-07 under similar facts. He has furnished a copy of the decision of the Tribunal in the above case in ITA No. 4228 and 4489/D/2009 (Asstt. Year 2006-07), order dated 6th July, 2012. 4. Ld. DR did not dispute the above submission of the Ld. AR. He however plac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. It was held that the finding of the AO that there is no complete identity between the contributors and participators is without any basis. The Tribunal has thus upheld the action of the first appellate authority holding that the assessee is a mutual concern and is covered by the concept of mutuality. The finding of the Ld. CIT(A) on the issue under similar facts during the year that the assessee is a mutual concern and is thus covered by the concept of mutuality is upheld . Ground No. 1 (revenue's appeal) is accordingly rejected. 6. The issue raised in ground No. 2 (Revenue) is also covered by the decision of Tribunal in the case of assessee for the assessment year 2006-07 (supra). In this ground, the revenue has questioned the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as erred in treating the amount of interest at Rs. 4,99,371/- earned on fixed deposits made out of subscription money received from members as income of the assessee. The Ld. CIT(A) has held that said interest is not exempt under the doctrine of mutuality. 10. During the assessment year 2006-07 an identical issue was raised. In that year the assessee had earned interest from Corporation Bank amounting to Rs.2,47,113/- and interest from OBC bank amounting to Rs. 23,506/-. The assessee claimed that it was following cash system of accounting and interest as and when is received is booked as income. The Ld. CIT(A) did not agree with the contention of the assessee and upheld the additions made by the AO, on respect of the above stated interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
