|
Court : HC
Brief : : Held by the Hon"ble court that the real contributors of income by availing the facilities of the marriage hall were not the members but non-members made temporary members for the purpose of renting the hall.Hence, the principle of mutuality would not apply and the rental income received from non-members was taxable.
Citation : C.I.T. Vs. M/s Trivandrum Club
Judgment :
Mutual Concern - complete identity between contributors and participators necessary.
C.I.T. Vs. M/s Trivandrum Club
2/27/2006
(2006) 282 ITR 505 (Ker)
Case Fact:
Whether the surplus arising in a mutual concern by renting the property (marriage hall) of the concern to non-members making them temporary members only for renting the marriage hall be regarded as a profit?
Decision:
Held by the Hon"ble court that the real contributors of income by availing the facilities of the marriage hall were not the members but non-members made temporary members for the purpose of renting the hall.Hence, the principle of mutuality would not apply and the rental income received from non-members was taxable.
|
