ITAT Pune: Bank FD Interest Taxable as Other Sources; 5% Expense Allowed

Marathi Bandhkam Vyavsayik Association Vs ITO (ITAT Pune) Mutuality Not Applicable to Bank FD Interest – Income Taxable as ‘Other Sources’ – ITAT Pune Allows 5% Expense Deduction The ITAT Pune held that interest earned by a builders’ association on bank FDs & savings accounts is taxable under the head “Income from Other Sources” & not exempt on the principle of mutuality. Relying on Supreme Court rulings in Bangalore Club & Secunderabad Club, the Tribunal observed that dealings with banks involve third parties, breaking the identity between contributors & partici...