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TMI Blog2016 (10) TMI 1381X X X X Extracts X X X X X X X X Extracts X X X X ..... rected to grant the assessee the exemption in respect of the interest on the bank by applying the principle and doctrine of mutuality.Therefore find considerable cogency in the contention of the Assessee s AR that the issue involved in ground nos. 1 and 2 are squarely covered by the ITAT decision as aforesaid. Allowance of expenses which were in. the nature of recurring, office and administrative expenses incurred in the course of earning income - Both the revenue authorities have not discussed this issue in their respective orders, therefore, the ground is remitted back to the file of the AO for fresh consideration, as per law, after giving adequate opportunity of being heard to the assessee. - I.T.A.No.6361/Del/2015 - - - Dated:- 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e expenses incurred in the course of earning income. 4. The appellant craves leave to add, alter, amend and modify any other ground of appeal before or at the time of hearing. 2. The brief facts of the case are that the return was filed on 26.7.2010 declaring income at Rs. NIL. The return was processed u/s. 143(1). Thereafter the case was selected under compulsory scrutiny. Notice u/s. 143(2) dated 15.9.2011 was issued and in compliance thereto Assessee s AR attended the hearing from time to time and furnished details / replies as called for. Books of accounts were also produced, which were test-checked. Thereafter, the AO completed the assessment u/s. 143(3) of the I.T. Act, 1961 on 14.2.2013 at an income of ₹ 18,18,600/- aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the order of ITAT dated 31.8.2009 passed in ITA No. 3708/Del/2008 (AY 2004-05) in assessee s own case. I find that assessee has been granted exemption u/s. 11 by virtue of registration u/s. 12AA granted by the CIT, Ghaziabad vide order No. 03/2007-08 w.e.f. 24.4.2007 and principle of Doctrine of Mutuality has been accepted by the ITAT in its order dated 31.8.2009. Therefore, I find considerable cogency in the contention of the Assessee s AR that the issue involved in ground nos. 1 and 2 are squarely covered by the ITAT decision dated 31.8.2009, as aforesaid. For the sake of clarity, I am reproducing the relevant paragraph of the Tribunal s order dated 31.8.2009 in assessee s own case, as aforesaid as under:- 4. We have considered th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. 5. Further, a perusal of the decision of the Hon'ble Jurisdictional High Court of Delhi in the case of All India Oriental Bank of Commerce Welfare Society 184 CTR 274 (Del) shows that the Hon'ble Jurisdictional High Court of Delhi has also considered the decision of the Hon ble Supreme Court of India in the case of Chelmsford Club referred to (supra) and in regard to the identical issue held as follows. A. Whether Tribunal was correct in excluding the interest income on deposits made out of contributions from members, deposits so made are not determined vis-a- vie member's contributions? B. Whether the principle of mutuality applies to the cases where interest earned on deposits made out of members contributions i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -or object and in this respect have no dealings or relations with any outside body, - then any surplus generated cannot in any sense be regarded as profits chargeable to tax. It has been observed that what is required to be seen is whether there is a complete identity between the contributors and participators. Once the identity of the contributor to the fund is of the recipients of the funds; the treatment of the company, though incorporated as a mere entity for the convenience of the members, in other words as an instrument obtained to their mandate; and the impossibility that the contributors should derive profits from contributions made by themselves to a fund which could only be expended or returned to themselves is established, the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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