CA Ashish Pathak
(Employed at Cipla Ltd.)
(2779 Points)
Replied 21 February 2013
Artificial Judicial Persons refers only the companies and body corporates incorporated in India or outside India. The community welfare associations or resident welfare associations are regarded as mutual concerns if they have been formed not with the objective of making profits. The objective should be social security, entertainent, professional development, etc. The income of mutual concern is exempt from tax as far as it is derived from activities of mutual nature, i.e income received by mutual concerns from members is exempt. These mutual concerns can be in any form....it may be an AOP/BOI or even a company. The fact that the mutual concern is incorporated as company does not make any difference because incorporation does not destroy the identity of the contributors and participators.