AO held that there were two categories of Members i.e.-Ordinary Members and Nominal Members  accordingly the exemption was denied in respect of transactions with nominal embers either r u/s 80P or under concept of mutuality. Tribunal held that AO’s  distinction or findings that society was transacting with non-members was not correct. There was no distinction between ordinary members and nominal members and just because categorized as nominal members, they could not be treated as ‘non-members. Accordingly the  assessee was covered by principle of mutuality and its income would be exempt on that concept. (AY. 2013-14)