AI Drafter 
TaxTMI 
TaxTMI 
2015 (10) TMI 1896
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.... are that the appellant is an Association of Person (AOP) established by Electricity regulators of SAARC countries. Its core aims are to i) share experience amongst the regulators of South Asian countries, (ii) conduct training programmes to serve regulatory agencies and (iiii) provide data bank of information relating to regulatory reform process and experience. The appellant filed its original return original Return of Income (ROI) on 03.09.2010 showing income of Rs. 9,59,630/-, which, later on, was revised showing Nil income on the basis of the principle of mutuality. The case was subsequently selected for scrutiny. The AO, observing that the appellant is free to accept gifts and donations from anyone as per clause 10 of its Memorandum o....
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....ty held that the income of the assessee is not covered by the principles of mutuality. Aggrieved the assessee is before us. 4. We have heard Prof. S.Sampath, C.A. the Ld.Counsel for the assessee and Smt.Rakhi Vimal, JCIT, Ld.D.R. on behalf of the Revenue. 5. The A.O. rejected the claim of the assessee that its income is exempt by the principles of mutuality by relying on: (a) Para 10 of the Memorandum of Association (MOA); (b) Para 12 of the MOA of the Society. 6. Prof.Sampath, the Ld.Counsel's defense is that no funds and donations were received by the assessee during the year and hence mere authorization given to the Society vide para 10 of the MOA, to receive funds and donations from other than Members, does not impinge on the c....
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..... relies on Clause no.10 and 12 of the MOA and argues that the pith and substance of this clauses demonstrates that the assessee is not governed by principles of mutuality. 6.3. After hearing rival contentions, I find that the aims and objects of the Society are described in Clause 3 of the MOA. Para 3, page 2 and 3 of the paper book reads as follows:- "3. Aims and Objectives: SAFIR aims at providing high quality capacity building and training on infrastructure regulation and related topics, in South Asia. The specific objectives of SAFIR are to: (i) Provide a platform for experience sharing amongst the regulators of the region; (ii) Facilitating effective and efficient regulation of utility and infras....
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....ous members, individual, corporate body, association, trust, world bank, or any other statutory or regulatory or financial body, government or any other source in or outside India. 10.1.2. All other sums of money that may be provided by the governments. 10.1.3. All subscription and charges rece3ived from the members. 10.1.4. All sums of money generated by way of grants and donations or any other manner or from any other sources. 10.1.5. All other sums of money credited to the said fund subject to the tax and foreign currency transactions related statutes and regulations, for the time being in force. Similarly in the rules and regulations, Clause 11 read as follows:- "11. Utilisation of t....
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....ied on, either because it has survived its usefulness, or because sufficient support is not forthcoming or for any other reason, the Steering Committee may wind up SAFIR. Provided that SAFIR shall not be wound up save by a clear majority of two thirds of the members of its Steering Committee present and voting at t EGM. Should it be decided to wind up as aforesaid, its property shall not be paid to or distributed among its members, but shall be given to some other body having objects similar to SAFIR or to any charitable society to be determined by the votes of not less than three fifths of the members of the Steering Committee present at a meeting called for that purpose. 6.4. A perusal of these Clauses demonstrate that the pri....