Principle of mutuality cannot be destroyed just because funds not parked with members

AR appearing for the assessee pointed out that the case now is fully covered by the decision of the Co-ordinate Bench in ITA No. 6223/Mum/2009 in the case of ITO v/s. Hill Properties Ltd. wherein Hon’ble Mumbai Bench has accepted the principles of mutuality. In this case also, the funds were parked with bank, ICICI Bonds, BEST deposits, as in the present case, where the funds had been kept as deposits with various banks. The Hon’ble Bench in this case held, “that the principle of mutuality is applicable to the assessee even though it is an incorporated company”. The AR pointed out that...