https://www.taxtmi.com/caselaws?id=210630 Interest earned by a club or co-operative society on fixed deposits and savings bank deposits with banks and financial institutions is not protected by mutuality. Mutuality requires complete identity between contributors to the common fund and participators in the surplus, but bank interest arises from an arm's length transaction with a third party in the character of a customer. Where corporate members are involved, the contribution is made by the juridical entity while the benefit is enjoyed by nominated natural persons, breaking the required identity. Parking surplus funds in interest-bearing deposits is a commercial deployment of funds, so the receipts are taxable. en-us Sat, 27 Aug 2011 00:00:00 +0530 Fri, 14 Dec 2012 11:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=210630 Interest earned by a club or co-operative society on fixed deposits and savings bank deposits with banks and financial institutions is not protected by mutuality. Mutuality requires complete identity between contributors to the common fund and participators in the surplus, but bank interest arises from an arm's length transaction with a third party in the character of a customer. Where corporate members are involved, the contribution is made by the juridical entity while the benefit is enjoyed by nominated natural persons, breaking the required identity. Parking surplus funds in interest-bearing deposits is a commercial deployment of funds, so the receipts are taxable. Case-Laws Income Tax Sat, 27 Aug 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=210630