https://www.taxtmi.com/caselaws?id=10773 Where an association is formed to promote members' interests, and both contributors to the fund and beneficiaries of the surplus are confined to members, the principle of mutuality applies and excludes taxability of the receipts. The rules providing for distribution of surplus among members on dissolution reinforced that the common fund was for member benefit only, with no indication of dealings with outsiders. On that basis, the receipts were not assessable as business income under section 28(iii) either, because mutuality attached to the income and surplus. The taxability of the association's receipts was therefore negatived on mutuality grounds. en-us Wed, 01 Dec 2004 00:00:00 +0530 Fri, 24 Jul 2009 19:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10773 Where an association is formed to promote members' interests, and both contributors to the fund and beneficiaries of the surplus are confined to members, the principle of mutuality applies and excludes taxability of the receipts. The rules providing for distribution of surplus among members on dissolution reinforced that the common fund was for member benefit only, with no indication of dealings with outsiders. On that basis, the receipts were not assessable as business income under section 28(iii) either, because mutuality attached to the income and surplus. The taxability of the association's receipts was therefore negatived on mutuality grounds. Case-Laws Income Tax Wed, 01 Dec 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10773