INVESTORS CLUB TRICHUR,REP.BY ITS SECY. vs. THE COMMISSIONER OF INCOME TAX, COCHIN.

The question raised before the Tribunal was as to whether the appellant was entitled to exemption on the ground of mutuality? In other words, the claim is that the appellant's benefit of the floor charges collected from members goes back to the same -2- members, and so much so, based on principles of mutuality appellant's income is entitled to exemption. The Tribunal has found that the appellant was not giving any benefit to its members and floor charges were collected pertaining to trade of shares on behalf of outsiders by the members. Therefore, the claim of mutuality was turned down by the Tribunal.

We do not know, how appellant can claim exemption on principle of mutuality, when appellant has a case that it is entitled to exemption as a charitable institution and it has even got registration under Section 12A of the Income Tax Act. In any case, since the findings of the Tribunal on facts are contrary to the principle of mutuality, we do not find any ground to interfere with the order of the Tribunal. So far as, the claim of exemption as a charitable institution is concerned, we find that petitioner's institution does not qualify exemption by virtue of the bar contained in Section 11(4A) of the Income Tax Act. The Tribunal has extracted the relevant provision of the Act, which disqualifies Appellant for exemption. Since on facts, the Tribunal found that Appellant comes within the mischief of Section 11 (4A) of the IT -3- Act, we do not find any ground to interfere with Tribunal's order. Moreover, since disallowance of exemption is based on findings of facts, there is no substantial question of law arising out of the Tribunal's order. The Income Tax Appeal is, therefore, dismissed. (C.N.RAMACHANDRAN NAIR, JUDGE) (T.R.RAMACHANDRAN NAIR, JUDGE) jg