ANDHRA PRADESH ADVOCATES WELFARE FUND,HYDERABAD vs. INCOME TAX OFFICER, WARD 8(2), HYDERABAD

ITA 662/HYD/2023Status: DisposedITAT Hyderabad24 July 2024AY 2016-17Bench: SHRI K.NARASIMHA CHARY (Judicial Member), SHRI MADHUSUDAN SAWDIA (Accountant Member)26 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the principle of mutuality was not applicable to the interest earned from savings accounts and fixed deposits, as the contributors (banks) were not the same as the participants (advocates). The income from welfare fund stamps was also denied exemption due to commerciality and lack of voluntary contribution.

What were the facts?

The Andhra Pradesh Advocates Welfare Fund claimed exemption from income tax based on the principle of mutuality. The Assessing Officer and CIT(A) denied this exemption, particularly for interest income and income from welfare fund stamps, citing commerciality and lack of identity between contributors and beneficiaries.

What were the issues?

Whether the income earned by the Advocates Welfare Fund is exempt from tax under the principle of mutuality, and whether certain expenditures are allowable deductions.

Which sections of the Income-tax Act were involved?

Section 37

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(5)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, HYDERABAD BENCHES “B”, HYDERABAD

Before: SHRI K.NARASIMHA CHARY & SHRI MADHUSUDAN SAWDIA

Hearing: 18/07/2024

PER K. NARASIMHA CHARY, J.M: Aggrieved by the separate but iden"cal orders, all dated 31/10/2023 passed by the learned Commissioner of Income Tax (Appeals)- Na"onal Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), in the case of Andhra Pradesh Advocates Welfare Fund (“the assessee”) for the assessment years 2016-17, 2017-18 & 2018-19, assessee preferred these appeals. Since common issues are involved in all these ma"er, for the sake of convenience, we deem it just and convenient to dispose of these three ap

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 37

All 4,334 judgments and leading authorities on Section 37 →

Recent GST High Court judgments

Search GST case law →