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| The Tax Publishers2020 TaxPub(DT) 4250 (Mum-Trib) INCOME TAX ACT, 1961
Section 11 Section 12
Assessee-trust could not be denied charitable character merely because some element of its income was exempt from the Principles of Mutuality. Accordingly, assessee was entitled to benefit of section 11/12.
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Charitable trust - Exemption under section 11/12 - Allowability - Mutual trade association
Assessee was a mutual trade association having main object to safeguard interest of industry and trade amongst persons, companies, factories and firms engaged as manufacturer of rubber products made out of natural rubber, synthetic rubber and latex in India. According to AO, assessee being a mutual trade association. was entitled to the benefits of Principle of Mutuality and, therefore, any surplus remaining from dealings with members was exempt and, therefore, such an institution could not be eligible for benefits of section 11/12.Held: So far as Principle of Mutuality was concerned, the same was with reference to the services vis-a-vis members and qua the income received by assessee from non-members, the other provisions of the Act would govern. In any case, an entity could not be denied charitable character merely because some element of its income was exempt from the Principles of Mutuality. Accordingly, assessee was entitled to benefit of section 11/12.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2015 -- 16
IN THE ITAT, MUMBAI BENCH
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