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TMI Blog2019 (10) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... e assesse, National Association of Software and Service Companies (NASSCOM), is the premier trade body and the chamber of commerce of the IT-BPO industries in India; that the assessee was set up in 1988 is a non profit organisation registered under the Societies Registration Act, 1860 and also u/s 12A of the Income-tax Act, 1961 ("the Act"); that it aims to drive the overall growth of the technology and service market and maintain India's leadership position by taking up the role of a strategic advisor to the industry. 3. For the Asstt. Year 2009-10, they have filed their return of income on 25.9.2009 declaring nil income. Learned AO, however, during the course of assessment proceedings, observed that there is variance in the fee received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has been rendering services in relation to trade, commerce or business in lieu of some fees from members as well as non members and has been involved in business and commercial activity to which provisions of Section 28(iii) of the Act are applicable. 7. It is the submission of the learned DR that during the year under consideration, the assessee received fee from both its members and non members, offered income for taxation on the fee received from non members but claimed exemption on the income from receipts received from members based on the principle of mutuality but ld. AO is justified in denying exemption on the basis of violation of principle of mutuality since ld. AP on facts held that the case falls under the purview of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the variance in the types of membership, variance in subscription fee and the variance in the voting rights is an irrelevant consideration while deciding the issue relating to the exemption under the principle of mutuality despite the entity dealing with members and non members, it would not lose its character u/s 2(15) of the Act and the assessee is governed by the principle of mutuality. He supported the conclusion reached by the ld. CIT(A) basing on the above case law, which was also submitted before the ld. CIT(A). 9. It is not in dispute that the income of the assessee is received from members as well as non members. The income from the non members has been offered to tax by the assessee whereas membership fee from its own memb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers is not lost. The principle of establishing identity between the contributors and participators would apply only in respect of contributions made by the members. Hon'ble court concluded that the assessee being a mutual concern, the income derived from the property let out to its members and their guests and sale of liquor etc. to its members would not be taxable. 11. In this case, as already stated, the assessee had offered to tax the income derived from the receipts from the non members. In so far as the members are concerned, there is no dispute as to the identity between the contributors and the participators. 12. During the course of arguments, the question as to the way of disposal of the funds, if any, had arisen and by placing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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