Guest charge received by club from its members Not Taxable

Since principal of mutuality would apply to transaction with member; guest charge received by assessee club from its members would not be liable to tax

[2015] 56 taxmann.com 281 (Gujarat) HIGH COURT OF GUJARAT Junagadh Gymkhana

v. Income-tax officer

Section 4 of the Income-tax Act, 1961 - Mutual concern - Assessable as (Club) - Assessee-club received 'guest charge' from its members and utilized it for benefit and development of club members - Whether since principal of mutuality would apply to transaction with member; guest charge received by assessee club from its members would not be liable to tax - Held, yes