Police Canteen Wins – ₹32 Cr Activity Still Not ‘Business’- No Tax Audit Needed Under Mutuality Principle

Commissioner of Police Vs ITO (ITAT Chennai) Assessee is a Police Canteen unit set up by the Government of Tamil Nadu Home Department to supply household items like groceries, consumer goods, & daily essentials to police personnel through 9 sub-canteens. The canteen procures goods & distributes them to members at cost without any profit motive, functioning purely on the principle of mutuality. It filed return declaring Nil income. In the scrutiny assessment u/s 143(3), AO accepted the concept of mutuality & accepted the Nil income, thereby acknowledging that Assessee was not carryi...