Charitable Entity can’t be Taxed because some element of its income is exempt from Principles of Mutuality: ITAT

All India Rubber Industry Association Vs. ADIT (E) (ITAT Mumbai) The Mumbai bench of the Income Tax Appellate Tribunal ( ITAT ) has held that a charitable entity cannot be denied the tax benefits merely because some element of its income is exempt from the Principles of Mutuality. The objects of the assessee are for promoting and safeguarding rubber industry in India. The Assessee is also registered u/s 12AA of the Act with the Commissioner. For Assessment Year 2012-13, it filed its return of income declaring NIL income, which was subject to scrutiny assessment. The Assessing Officer noted the...