operative housing society is exempt from income-tax by the principle of mutuality ?"
2. At the time of hearing it was made clear that ... High Court did not decide the issue taking into consideration the principles of mutuality.
10. Shri Patil vehemently contended that the principle of mutuality would
case, the Honble Tribunal was legally correct in
holding that the principle of mutuality applies to the
property income and accordingly it is not taxable ... Company under the
Companies Act , its business is governed by the principle of
mutuality, therefore, the income, if any, earned by the
appellant is outside
participators and, as a result, the
principle of mutuality would stand attracted.
Mutuality :
7. The principle of mutuality postulates that all the
contributors ... agreement with the
principle that is enunciated by the Karnataka High Court in I.T.I.
Employees that the principle of mutuality would cover
mutuality. It was held that where an association receives income by indulging in mutual activity and non-mutual activity, then the principle of mutuality ... indulge in activities which are partly mutual and partly non-mutual. True, keeping in view the principle of mutuality, the surplus accruing to a members
society is a mutual concern so as to
claim exemption on principle of mutuality?
ii) Whether the ITAT was correct in law in holding that ... that the principle of mutuality is not destroyed by the presence
of transaction, which are non mutual in character. This principle can,
in such case
operative Housing Society is exempt from income-tax by the principle of mutuality?"
2. At the time of hearing it was made clear that ... High Court did not decide the issue taking into consideration the principles of mutuality.
10. Shri Patil vehemently contended that the principle of mutuality would
indulge in activities which are partly mutual and partly non-mutual. True, keeping in view the principle of mutuality, the surplus accruing to a Members ... indulge in activities which are partly mutual and partly non-mutual. True, keeping in view the principle of mutuality, the surplus accruing to a members
held that the assessee is covered by principle
of mutuality. Aggrieved by this the Revenue is in further appeal before ... members do not convert its non-mutual status to mutual. In the
like manner, the otherwise status of mutuality of an organization
cannot be destroyed
society. According to the society, therefore, as per the
principle of mutuality, such amount was not taxable in the
hands of the society. CIT(Appeals ... hand also fail to satisfy the third condition
of the mutuality principle i.e. the impossibility that
Page 25 of 27
O/ITR/33/1998
public character, whether its purpose is charitable and whether the principle of mutuality has cropped up in the hands of the assessee. Hence, each point ... next question which arises for our consideration is whether even if mutuality principle is acceptable, to what extent it will apply to the assessees income
