https://www.taxtmi.com/caselaws?id=9181 A registered members' club supplying refreshments and amenities only to its own members was held to fall within the principle of mutuality, because the contributors to the common fund and the participators in the surplus were the same class and no dealings with outsiders or commercial profit-making venture were involved. The receipts came solely from members, and the surplus was retained for maintenance and improvement of the club. Registration as a society did not alter the character of the arrangement, and the supplies to members lacked the element of transfer required for taxable sale. The surplus was therefore not assessable as business income or as income from other sources under the Indian Income-tax Act, 1922, and the assessee succeeded. en-us Wed, 22 Sep 1971 00:00:00 +0530 Sat, 20 Jun 2009 11:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9181 A registered members' club supplying refreshments and amenities only to its own members was held to fall within the principle of mutuality, because the contributors to the common fund and the participators in the surplus were the same class and no dealings with outsiders or commercial profit-making venture were involved. The receipts came solely from members, and the surplus was retained for maintenance and improvement of the club. Registration as a society did not alter the character of the arrangement, and the supplies to members lacked the element of transfer required for taxable sale. The surplus was therefore not assessable as business income or as income from other sources under the Indian Income-tax Act, 1922, and the assessee succeeded. Case-Laws Income Tax Wed, 22 Sep 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9181