Section 11 Exemption cannot be Denied Merely because Income is Exempt from Principles of Mutuality

Confederation of Indian Textile Industry Vs ITO (ITAT Mumbai) The issue under consideration is whether the exemption u/s 11 will be allowed against the interest income, exchange gain, and miscellaneous income to the Confederation of Indian Textile Industry? In the present case, the AO applied the principles of mutuality and observed that the regular income derived by the assessee from its members is exempt from the principles of mutuality. However, with regard to the interest income, exchange gain, and miscellaneous income as tabulated in the aforesaid table, the AO observed that these incomes...