Concept of mutuality - Payment of interest / compensation to the ...

Assessing Officer's Misapplication of Mutuality Concept Overturned Due to Society's Dividend Payments Under Clause 75(6).

April 27, 2021

Case Laws Income Tax AT

Concept of mutuality - Payment of interest / compensation to the members - The very fact that bylaws of the assessee-society contained the provisions that payment of dividend to its members goes to show that it is not a mutual society and commerciality is very much inherent in the activities of the assessee-society. In this regard, clause 75(6) of the Byelaws of the assessee-society is relevant. Therefore, the action of the Assessing Officer in thrusting the concept of mutuality even when the assessee-society never claimed the concept of mutuality, is bad in law and is hereby set aside. - AT

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Concept of mutuality - Payment of interest / compensation to the ...

Assessing Officer's Misapplication of Mutuality Concept Overturned Due to Society's Dividend Payments Under Clause 75(6).

April 27, 2021

Case Laws Income Tax AT

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