TaxTMI 
TaxTMI 
2023 (3) TMI 1506
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....e Tribunal vide order dated 08/01/2021. Thereafter, the assessee filed Miscellaneous Application in MA No.131/Mum/2021 pointing some factual error while deciding ground No.6 of the appeal including non-consideration of the alternate prayer of the assessee on the 'principle of mutuality'. The Tribunal vide order dated 24/08/2021 allowed the aforesaid Miscellaneous Application. The operative part of the Tribunal order in MA No.131/Mum/2021 is reproduced herein under: "As stated by the ld. A.R, and rightly so, as the Tribunal had failed to address and therein adjudicate the specific contentions that were raised by the assessee in the course of the hearing of the appeal in furtherance of its claim that the aforesaid revenues, viz. (i).....
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....and the effect of principle of mutuality under the provisions of the Income Tax Act. For the sake of completeness relevant extract of ground No.6 (c) is reproduced herein under: "Ground No.6 - Collection of membership fee, BSPL ink charges and fees for 'IATA Clearing House facility' (ICH facility') In relation to collection of membership fees a. xxx b. xxx c. Without prejudice to the above, erred in not appreciating the contention of the Appellant that it qualifies as a mutual association and hence, the membership fees received from the members should not be liable to tax having regard to the principle of mutuality under the Act." The ld.Counsel for the assessee submits that the assessee/appel....
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....he Department has accepted that the principle of mutuality applies to India Branch of the assessee, therefore, addition cannot be made on account of collection of membership fee in the hands of the assessee in India. Once, India Branch is held to be mutual association, no question of taxing assessee in India arises on the same transaction. 4. Per contra, Ms. Samruddhi Dhananjay Hande representing the Department vehemently defended the impugned assessment order and placed reliance on directions of the DRP. 5. We have heard the submissions made by rival sides. The limited issue for consideration before us is with regard to taxability of collection of membership fee. The solitary argument of the assessee is that by virtue of principle of....
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....instant case we find that the Assessing Officer while passing the draft assessment order applied similar test to determine mutuality and came to the conclusion that membership dues are business receipts of the assessee. The DRP without ado upheld the same. 7. In principle we concur with the submissions of ld. Counsel for the assessee. We find that the directions of DRP in assessee's India branch is for anterior Assessment Year 2014-15 and are subsequent in time i.e. dated 22/09/2017, whereas, in assessee's case for AY 2012-13, the directions are dated 17/11/2015. Taking into consideration entire facts, we deem it appropriate to restore this issue to the file of Assessing Officer for denovo examination in the light of aforementioned DRP d....