https://www.taxtmi.com/caselaws?id=69984 A Nidhi was treated as a mutual concern because its deposits came from members, interest was paid on those deposits, and dividends were payable only to shareholders who transacted with the Nidhi during the year. Non-contributors had no right to share in the surplus, so the common fund and its benefits were confined to participants who contributed to it. On that basis, the arrangement satisfied the mutuality test, as the contributors and participants were identical in substance and the concern did not operate like an ordinary bank. The surplus was therefore not taxable as income, and the departmental appeals were dismissed. en-us Mon, 29 May 1989 00:00:00 +0530 Wed, 13 Apr 2011 12:15:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69984 A Nidhi was treated as a mutual concern because its deposits came from members, interest was paid on those deposits, and dividends were payable only to shareholders who transacted with the Nidhi during the year. Non-contributors had no right to share in the surplus, so the common fund and its benefits were confined to participants who contributed to it. On that basis, the arrangement satisfied the mutuality test, as the contributors and participants were identical in substance and the concern did not operate like an ordinary bank. The surplus was therefore not taxable as income, and the departmental appeals were dismissed. Case-Laws Income Tax Mon, 29 May 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69984