2018 (1) TMI 1769

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....ort 'the Act'). 2. In this appeal, although the assessee has raised multiple Grounds of appeal, but substantively speaking, the dispute arises from the action of Assessing Officer in determining the taxable income at Rs. 1,08,15,428/- representing interest earned on fixed deposits with banks of Rs. 1,05,55,085/- and interest on income-tax refunds of Rs. 2,60,343/- as against NIL income declared in the return of income. 3. At the time of hearing, it was a common point between the parties that the disputes raised by the Assessing Officer in this year are primarily in line with the stand of the assessing authority for Assessment Year 2011-12, which has since travelled to the Tribunal and, vide order in ITA No. 5532/Mum/2015 dated 11.01.2....

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....mselves constituted a mutual association, and it attracted taxation on the principles of mutuality, and that it was not a charitable organisation. So far as the interest income was concerned, the Assessing Officer held that the principles of mutuality would not govern it, and the same was, therefore, taxable. Thus, the Assessing Officer concluded by holding that assessee was not a charitable institution, but a mutual association and, since the interest income did not fall within the principles of mutuality, the total income was assessed at Rs. 1,08,15,428/-. The CIT(A) merely noted that similar issue had been decided by him in assessee's own case for Assessment Year 2011-12 and following the same, he upheld the action of the Assessing Offic....

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....hit by the proviso to Sec. 2(15) of the Act. 5. On the other hand, the ld. DR has reiterated the stand of the lower authorities, which we have already noted in the earlier paras and is not repeated for the sake of brevity. 6. We have carefully considered the rival submissions. Ostensibly, in the instant case, it is neither the case of CIT(A) nor of the Assessing Officer that the registration granted to the assessee u/s 12A of the Act has been altered or withdrawn. Thus, we proceed further in the background that the registration of the assessee as a charitable institution u/s 12A of the Act continues to survive. So, however, the case sought to be made out is that the amended proviso to Sec. 2(15) of the Act w.e.f. 01.04.2009 makes the ....