2001 (1) TMI 34

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....ance of the assessee, the following questions have been referred for the opinion of this court under section 256(1) of the Income-tax Act, 1961 (in short "the Act") by the Appellate Tribunal (in short, "the Tribunal") "Whether, on the facts of the case, the Income-tax Appellate Tribunal was legally right in holding that the petitioner-association was not a mutual association in so far as subscr....

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....come-tax (Appeals) (in short "the CIT (A)"). He held that even subscription received from the hirer members cannot be taxed on the ground of mutuality. The Revenue filed an appeal before the Tribunal. It was held by the Tribunal with reference to various clauses of the articles and memorandum of association that there was no mutuality so far as hirer members are concerned. It was, inter alia, obse....

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....is argument runs counter to all the authorities on the question of mutual association. The power to dispose of the surplus is not something as sharing it or receiving it. The fact that the Department has accepted the assessee as mutual association so far as the subscription by the regular members is concerned is no reason to bold that it is a mutual associations so far as the temporary hirer membe....