Interest from Bank by Housing Society Taxable – Principle of mutuality do not apply

HIGH COURT OF ANDHRA PRADESH Commissioner of Income-tax V/s. Secunderabad Club Picket ITTA NOS. 422, 443, 529-533 OF 2006, 78 & 81 OF 2007 AND 244 OF 2010 AUGUST 27, 2011 JUDGMENT V. V. S. Rao J. These appeals by the Revenue are against the orders of the Income-tax Appellate Tribunal (ITAT), Hyderabad Bench, holding that the interest accrued to the assessee club from its deposits with banks and financial institutions, which are its corporate members, are not tainted with commerciality ; and that such interest income is not taxable on the principle of mutuality. The questio...