CANARA BANK Vs. K.SURENDRA PRABHU

JUDGEMENT

(1.) THESE two appeals are filed by the assessee being aggrieved by the order of the Appellate Tribunal, Bangalore Bench in I. T. A. No. 478/ Bang/ 2001 and 479/Bang/2001, dated May 13, 2003, for the assessment years 1995 -96 and 1996 -97, respectively, since the substantial questions of law framed in these two appeals are identical and parties are same, these appeals are disposed of by this common judgment.

(2.) THE appellant is a registered society comprising of the employees of Canara Bank established with the object of promoting welfare among the members, who contribute towards the corpus fund. The welfare fund is utilized, inter alia, towards advance of loans to the members and receive interest, which is a major portion of its revenue. For the assessment year 1995 -96 and 1996 -97 in respect of excess income over expenditure of Rs. 4,20,719 and Rs. 6,08,303. The appellant claimed exemption from tax on the basis of the principle of mutuality. The assessment was processed under Section 143(1)(a) of the Income -tax Act. Subsequently, the assessment was reopened under Section 147 of the Act on September 9, 1999, and a notice under Section 148 was issued. In response to the said notice the appellant filed a return on November 4, 1999, declaring the same income as per the original return of the income.

(3.) THE appellant next filed appeals before the Income -tax Appellate Tribunal challenging the taxing of the interest income and dividend income, which were also dismissed on May 13, 2003. Aggrieved by the said order of the Tribunal the assessee has filed this appeal raising the following substantial questions of law: