04 May 2009
My residential Co-op society has set up mobile tower on the terrace and the income generated from the same is applied for meeting the expenses of the society such as payment of taxes or establishment expenses or maintenance expenses. In this case what would be the income chargeable to tax of the society. The gross amount received as reduced by the expenses incurred or the gross amount received itself. The society has reduced the contribution from members to the extent of the income generated as above
In this case the society members are the participants in benefit but are not the contributors hence such income does not come under the concept of mutuality. Is the application of the income for the objects of society deductible as expenses
CAclubindia
