Mutuality principle and fixed deposit interest: no referable question of law arose from the Tribunal's factual finding.

Interest income from fixed deposits was treated as covered by the mutuality principle because the Tribunal had already found the assessee-club to be a mutual benefit society and had followed its earlier view for prior assessment years, including rental receipts and interest income. On that factual basis, the proposed reference under section 256(1) did not disclose any fresh referable question of law arising from the Tribunal's order. The reference application was therefore dismissed.

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Issues: Whether, on the facts found by the Tribunal, any referable question of law arose for reference under section 256(1) of the Income-tax Act, 1961 in relation to the exemption of interest income from fixed deposits under the principle of mutuality.

Analysis: The Tribunal had earlier treated the assessee-club as a mutual benefit society and had followed its own prior decision for earlier assessment years, where the issue of exemption covered not only rental receipts but also interest income. The question sought to be referred turned on the Tribunal's factual finding that the assessee functioned on mutuality principles, and no fresh question of law was shown to arise from the order under challenge.

Outcome: No referable question of law arose, and the reference application was dismissed.

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