https://www.taxtmi.com/caselaws?id=191125 Whether admission fees are taxable turns on the mutuality principle: exemption requires identity between contributors to a common fund and participators in surplus, but that identity is absent where an organisation issues dividend-bearing shares, receives similar receipts from members and non-members, and distributes earnings to capital investors rather than solely to contributors. Entrance fees charged as arbitrary prices of membership and repeatedly received as new members join have commercial character. Applying these factors, admission fees constitute profits and gains of business and are assessable as taxable income rather than exempt mutual receipts. en-us Tue, 22 Jan 1957 00:00:00 +0530 Tue, 21 Mar 2017 17:16:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=191125 Whether admission fees are taxable turns on the mutuality principle: exemption requires identity between contributors to a common fund and participators in surplus, but that identity is absent where an organisation issues dividend-bearing shares, receives similar receipts from members and non-members, and distributes earnings to capital investors rather than solely to contributors. Entrance fees charged as arbitrary prices of membership and repeatedly received as new members join have commercial character. Applying these factors, admission fees constitute profits and gains of business and are assessable as taxable income rather than exempt mutual receipts. Case-Laws Income Tax Tue, 22 Jan 1957 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=191125