https://www.taxtmi.com/caselaws?id=771378 ITAT Mumbai allowed the appeal of a cooperative housing society challenging addition of business income. The society claimed exemption under section 80P(2)(d) and principle of mutuality. ITAT held that cooperative societies' main income source is members' contributions for services and amenities. Surplus after expenses constitutes mutuality principle where members cannot trade with themselves to generate taxable profit. Since society had no business activity and surplus arose from members' contributions toward common expenses, it was not taxable income. ITAT set aside CIT(A) order and directed AO to delete the addition. en-us Thu, 15 May 2025 00:00:00 +0530 Sat, 24 May 2025 09:00:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771378 ITAT Mumbai allowed the appeal of a cooperative housing society challenging addition of business income. The society claimed exemption under section 80P(2)(d) and principle of mutuality. ITAT held that cooperative societies' main income source is members' contributions for services and amenities. Surplus after expenses constitutes mutuality principle where members cannot trade with themselves to generate taxable profit. Since society had no business activity and surplus arose from members' contributions toward common expenses, it was not taxable income. ITAT set aside CIT(A) order and directed AO to delete the addition. Case-Laws Income Tax Thu, 15 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771378