Contribution made to mutual concerns by non-members for commercial reasons, can’t be taxed

[2015] 56 taxmann.com 466 (Mumbai - Trib.)

IN THE ITAT MUMBAI BENCH 'B'

Deputy Commissioner of Income-tax -1(1)

v.

Bombay Gymkhana Ltd.

 Section 4 of the Income-tax Act, 1961 - Mutual concern - Assessable as (Mutual association) - Assessment year 2007-08 - Assessee, a mutual association, received certain sum from non-members by way of sponsorship for various events organised by assessee for mutual benefit of members - Companies made contribution for sales promotion while objective of assessee in receiving contributions was to meet part of expenditure incurred in organizing events - Moreover, there was no intention to earn any income out of abovesaid contributions - Whether said contribution could not be taxed as income in hands of assessee - Held, yes [Para 6][In favour of assessee]