https://www.taxtmi.com/caselaws?id=356165 A cooperative electricity distribution society may claim exemption on the principle of mutuality where there is complete identity between contributors and consumers and no outsider participates in the surplus. The absence of an express bye-law for distribution of surplus assets on dissolution does not, by itself, defeat mutuality if the statutory framework routes the surplus to a Registrar for transfer to a similar society. The analysis also notes that a later amendment to the bye-laws supported the mutual character of the concern, and the surplus from the activity was therefore not chargeable to tax. en-us Wed, 21 Feb 2018 00:00:00 +0530 Mon, 26 Feb 2018 11:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=356165 A cooperative electricity distribution society may claim exemption on the principle of mutuality where there is complete identity between contributors and consumers and no outsider participates in the surplus. The absence of an express bye-law for distribution of surplus assets on dissolution does not, by itself, defeat mutuality if the statutory framework routes the surplus to a Registrar for transfer to a similar society. The analysis also notes that a later amendment to the bye-laws supported the mutual character of the concern, and the surplus from the activity was therefore not chargeable to tax. Case-Laws Income Tax Wed, 21 Feb 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=356165