2012 (12) TMI 499

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....evant for the Assessment Year 1999-2000. The assessee filed a return showing nil income. The same was accepted. Thereafter, power under Section 147 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") was used. This power was used, when it was noticed that the assessee has received Rs. 8,60,336/- as interest income during the relevant year. The assessee contended that the facts and circumstances did not justify user of power under Section 147 of the Act. It also contended that the assessee is a club of members and, accordingly, principle of mutuality applies. It stated that income derived through mutual actions of the participants and contributors, no income is generated and, accordingly, the income of the assessee is not taxa....

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....sment Years and, at the same time, the Assessing Officer has not been able to bring on record any change of situation but, according to us, failed to take into consideration the fact that a decision in relation to one Assessment Year is not res judicata in relation to another Assessment Year and also failed to take into account the law pertaining to mutuality as was being projected by the assessee. 4. Section 2 (24) of the Act gives an inclusive definition of income. In such inclusive definition, only one type of income arising from activities based on mutuality has been mentioned. In that background, the Hon'ble Supreme Court in the case of Chelmsford Club versus Commissioner of Income-Tax, reported in (2000) Vol. 243 ITR 89 observed, ....