2018 (6) TMI 657

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..... ovindarajan, AC (AR) for the Respondent. Per Bench Brief facts are that the appellant is registered under the Societies Registration Act. The activities of the appellant association is to do agricultural activities and also to maintain estate roads, street lights in the estate, water pipelines, security, safety of the estate etc., in accordance with the bylaws of the association. The department .....

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..... ety. The owners of the estate are liable to become a member by paying a fixed amount as corpus fund. This amount is deposited by the association in the bank and the association derives interest from such deposits which is used for maintenance works and association activities. The interest received is nothing but money owned by the association and it is not received from the estate owners. The inte .....

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..... y are not collecting any subscription from the members of the association and the money deposited is a corpus fund in the bank earns interest out of which the association is providing maintenance activities in the farms/estates. The accrued interest received from the bank on an amount deposited cannot be treated as "subscription". We are, therefore, of the view that the impugned demand cannot sust .....

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