1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Section 12A registration certificate is license to tax exemption for income receipts from non-members

ByCA Gopal Nathani

Sep 12, 2020

The SC in CIT (Exemptions) v. IHC (2020) 424ITR325 following Delhi Gymkhana case ( 339ITR525) held that a registered society having members as contributories/beneficiaries and also holding registration u/s 12A is entitled to claim reliefs u/ss. 11, 12 and 13 in completeness without any requirement to display application of the mutuality principles. The SC distinguished their Bangalore club ( 350ITR509) decision for the fact that the decision therein pertained to an unincorporated AOP not holding any 12A registration.

This ratio therefore affirms the understanding that even amounts earned by a society from non members like interest earned from banks etc. would not escape exemption provided it holds S. 12A charitable registration.