2023 (3) TMI 1506

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....after, 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). membership fees; (ii). fees for IATA Clearing House....

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....sions 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/appellant was incorporated under the Special Act of the Parliament of Canada. Thus, the assessee i....

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....ion 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 mutuality, membership fee collected by the assessee is not taxable under the provisions of the Act. 6. We find that in....