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TMI Blog2022 (4) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... fied with explanations of the assessee on the concept of mutuality and relied on the the Hon ble Supreme Court decision in the case of Citizen Cooperative Society [ 2017 (8) TMI 536 - SUPREME COURT] We considering the facts, circumstances and the ratio of the Hon ble Supreme Court decision do not find any infirmity in the order of the CIT(A) and uphold the same and dismiss the grounds of appeal of the assessee. - ITA No. 3659/Mum/2019 - - - Dated:- 22-3-2022 - Shri Prashant Maharishi, Accountant Member And Shri Pavan Kumar Gadale, Judicial Member For the Appellant : None For the Responden : Ms.Neena Jeph. Sr. DR ORDER PER PAVAN KUMAR GADALE JM: The assessee has filed the appeal against the order of the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry of members and observed at page 3 Para 4.6 as under: 4.6 As discussed above, on perusal of the by-laws of the society, it is noted that society caters to two distinct categories of members. The first category is that of resident members or ordinary members. The second category is that of nominal members. On further perusal of By-laws of the society, it is gathered that the nominal members does not have equal rights compared to ordinary members. They are not allowed to vote and even not allowed to share annual dividend etc. Therefore, both in form and substance, the activity is in violation of the Cooperative Societies Act and Cooperative Society Rules as the principle of mutuality is missing in the instant case. The said facts has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative society and activities are confined to members only. Whereas the assessee being a cooperative society provided services to its nominal members who does not have equal rights compared to ordinary members and the concept of mutuality principle is nullified. The CIT(A) was not satisfied with explanations of the assessee on the concept of mutuality and relied on the the Hon ble Supreme Court decision in the case of Citizen Cooperative Society Vs. ACIT 84 taxmann.com 114(SC) and observed at page 3 Para 8.1 to 9 as under: 8.1 I have considered the submission of the assessee, carefully gone through the order of the AG, perused the material on record, and referred to the case laws relied upon by the appellant and the AG. 8.2 During t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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