https://www.taxtmi.com/caselaws?id=76801 The doctrine of mutuality applies where an association is formed exclusively for members, contributions come only from members, and funds are applied only to the common object; on that basis, surplus arising from member contributions to operate a common effluent treatment facility retains the character of mutual receipts and is not taxable. Interest earned on bank fixed deposits and other third-party deposits does not satisfy the identity between contributors and participators, because it arises from an arm's length banking relationship rather than from members; such interest falls outside mutuality and is taxable as income from other sources. Taxability of interest on other deposits and income-tax refunds was left for reconsideration. en-us Thu, 17 Jun 2010 00:00:00 +0530 Fri, 30 Jan 2026 11:08:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=76801 The doctrine of mutuality applies where an association is formed exclusively for members, contributions come only from members, and funds are applied only to the common object; on that basis, surplus arising from member contributions to operate a common effluent treatment facility retains the character of mutual receipts and is not taxable. Interest earned on bank fixed deposits and other third-party deposits does not satisfy the identity between contributors and participators, because it arises from an arm's length banking relationship rather than from members; such interest falls outside mutuality and is taxable as income from other sources. Taxability of interest on other deposits and income-tax refunds was left for reconsideration. Case-Laws Income Tax Thu, 17 Jun 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=76801