https://www.taxtmi.com/caselaws?id=151870 Premium received by a co-operative housing society on transfer of a flat is tested against mutuality by asking whether the payer is a contributor to the common fund and a participator in the surplus. A payment by the transferor, who remained a member when the premium was paid and contributed within the bye-laws for the common benefit of members, retains the character of a mutual receipt and is not taxable. A payment by the transferee, who was not yet a member and paid to secure the transfer of the flat, does not satisfy the mutuality test and is taxable. The existence of a bye-law permitting premium does not itself make the receipt from a non-member mutual. en-us Fri, 04 Jul 2003 00:00:00 +0530 Mon, 06 Jun 2016 11:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=151870 Premium received by a co-operative housing society on transfer of a flat is tested against mutuality by asking whether the payer is a contributor to the common fund and a participator in the surplus. A payment by the transferor, who remained a member when the premium was paid and contributed within the bye-laws for the common benefit of members, retains the character of a mutual receipt and is not taxable. A payment by the transferee, who was not yet a member and paid to secure the transfer of the flat, does not satisfy the mutuality test and is taxable. The existence of a bye-law permitting premium does not itself make the receipt from a non-member mutual. Case-Laws Income Tax Fri, 04 Jul 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=151870