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of <h1>Mutuality doctrine exempts associations from income tax when members deal only with themselves through common fund</h1> The doctrine of mutuality in income tax law establishes that a person cannot profit from themselves or an association sharing common identity. The principle requires complete identity between contributors and participants/beneficiaries, making any surplus a common fund increase rather than taxable income. The triple test includes: identity of contributors with recipients, association status as member instrument, and absence of profit possibility from contributions. Courts have held that mutuality exemption cannot apply to incorporated companies conducting ordinary business with non-members for profit, as this lacks the required mutual dealing between members and common fund structure for mutual benefit.
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