Mutual Concern - complete identity between contributors and participators necessary. ::

Last updated: 07 November 2007

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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

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.