Principle of mutuality

Court :
Kerala High Court
Brief :
In a case where the assessee made persons renting the marriage hall as temporary members of the club and claimed that the entire income is not taxable on the principle of mutuality. The Kerala High court in CIT vs. Trivandrum Club (2006) 282 ITR 505 (Ker) held that the marriage hall was actually rented to non-members and by making them as temporary members the principle of mutuality could not be applied. Accordingly the rental income was subjected to tax.
Citation :
(2006) 282 ITR 505 (Ker)

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