ITAT Pune: Interest on Bank Deposits Not Covered by Mutuality; Only Proportionate Expenses Allowed

Marathi Bandhkam Vyavsayik Association Vs ITO (ITAT Pune) In this case, the assessee (a builders’ association trust) filed a revised return claiming exemption based on the principle of mutuality instead of sections 11 & 12. The AO ignored the revised return and made additions, which was partly corrected by the CIT(A). The Tribunal held that: Revised return must be considered – AO erred in relying on the original return instead of the valid revised return. Principle of mutuality applies only to member contributions, not to income involving third parties. Interest on bank FDs/saving...