https://www.taxtmi.com/caselaws?id=190060 Laga receipts collected from a restricted class of members were treated as taxable business income because the mutuality exception failed where there was no subsisting identity between all contributors and all participators, nor an unconditional right in every member to contribute to the common fund. The fact that facilities were available to all members did not cure that defect. The article also states that earmarking two-thirds of the receipts for charity did not secure exemption, because income is taxed on accrual and later application to charitable purposes does not prevent taxation at receipt or accrual stage. The discussion concludes that the receipts remained taxable and the charitable earmarking was insufficient for exemption. en-us Thu, 07 Feb 1957 00:00:00 +0530 Thu, 02 Feb 2017 17:13:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=190060 Laga receipts collected from a restricted class of members were treated as taxable business income because the mutuality exception failed where there was no subsisting identity between all contributors and all participators, nor an unconditional right in every member to contribute to the common fund. The fact that facilities were available to all members did not cure that defect. The article also states that earmarking two-thirds of the receipts for charity did not secure exemption, because income is taxed on accrual and later application to charitable purposes does not prevent taxation at receipt or accrual stage. The discussion concludes that the receipts remained taxable and the charitable earmarking was insufficient for exemption. Case-Laws Income Tax Thu, 07 Feb 1957 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=190060