<h1>Bombay High Court: Cooperative Housing Society Transfer Fees Not Taxable Under Mutuality Principle.</h1> The Bombay High Court ruled that transfer fees received by cooperative housing societies from their members are not subject to income tax due to the principle of mutuality. The court applied several tests to determine mutuality, concluding that the absence of commerciality and the identifiable class of members satisfied these criteria. The society's activities, primarily property maintenance, align with mutuality principles, as funds are used for member benefits and surpluses are distributed according to bylaws. Consequently, the court decided in favor of the cooperative housing society, asserting that the transfer fees are not taxable.