The SACCO contented that income derived from FOSA services was mutual income generated from its own members and therefore exempted from tax under Section 19A (4). The tax payer had treated this amount as exempt but was latter subjected to additional assessment. The appellant contested the decision through the local committee and later appealed to courts. It was ruled that income from front office services is subject to tax.
Click link for full case- Income Tax Appeal 4 of 2013