TaxTMI 
TaxTMI 
2016 (6) TMI 846
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....Revenue has filed only one Appeal, the challenge in in its memo of appeal is to the issues arising in all the four Assessment Years. On an earlier occasion, Mr. Suresh Kumar sought permission to treat this appeal as relating to A.Y. 2001-02 and be permitted to pay further Court Fees for the further three years. This permission was granted and the appellant has paid the Court Fees for the appeals relating to A.Y. 1998-99, 1999-2000 and 2000-01. 3. The Revenue has urged the following substantial questions of law for our consideration : (i) Whether on the facts and circumstances of the case and in law, the Tribunal was justified in holding that the collection of Rs. 2 lac by the assessee society as interest free loan, from incoming....
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....ociety was constituted in the year 1954 and has 198 members occupying its tenaments. The respondent Society had available unutilized FSI (Floor Space Index) and sought to exploit it by constructing four additional tenaments and also enclosing the balconies (Verandah) of the existing tenaments resulting in additional l00 sq.ft. to its members. None of the existing members came forward to seek allotment of the four additional tenaments which were to be constructed on exploitation of the unutilized FSI. (b) In 1998, four persons sought membership of the Society. The factual matrix of the events relating to the admission and contribution for the new four tenaments from the four new members of the society is summarized as under : Sr. No. ....
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....f the Assessing Officer. (e) On further appeal by the respondent Society, the Tribunal by the impugned order has held that it is undisputed position that all the four persons who were allotted the tenaments were the members of the Society at the time when they made contribution in the aggregate of Rs. 1.10 Crores and also when the four additional tenaments were alloted to them. The amounts paid by them would be covered under the concept of mutuality. This is so as a class contributors and the participants of the respondent Society are common. The Tribunal while allowing the Society's appeal inter alia placed reliance upon the decision of the Apex Court in Commissioner of Income Tax Vs. Bankipur Club Ltd. 226 ITR 97 and in particular ....
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....e Tax, 350 ITR, 509. The Apex Court has observed that the basis of not taxing surplus funds in the hands of an Assessee on the principle of Mutuality finds its origin in the concept of no man can make a profit of himself. The Apex Court in Banglore Club (supra) set out three tests to be satisfied as under before the principle of mutuality can be applied as under : (i) There must be a complete identity between the contributors and the participants as a class; (ii) The actions of the participants and contributors must be in furtherance of the activities of the assessee; and (iii) There must be no scope of profiteering by the contributors from a fund made by them, which could only be expended or returned to them. The Court in Bangl....