https://www.taxtmi.com/caselaws?id=276724 A genuine mutual insurance association is not taxable on surplus arising from members' contributions, because the excess represents members' own money returned under the doctrine of mutuality rather than trading profit. Sections 2(6C) and 10(7) of the Indian Income-tax Act did not alter that result on the facts. Reserves transferred from annual accounts, including contingency and general reserves, could not be added back under rule 6, since a reserve is not expenditure actually incurred and does not fall within the permitted adjustment. The mutual surplus remained non-taxable and the reserve deductions were upheld. en-us Tue, 26 Sep 1961 00:00:00 +0530 Fri, 16 Nov 2018 14:27:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276724 A genuine mutual insurance association is not taxable on surplus arising from members' contributions, because the excess represents members' own money returned under the doctrine of mutuality rather than trading profit. Sections 2(6C) and 10(7) of the Indian Income-tax Act did not alter that result on the facts. Reserves transferred from annual accounts, including contingency and general reserves, could not be added back under rule 6, since a reserve is not expenditure actually incurred and does not fall within the permitted adjustment. The mutual surplus remained non-taxable and the reserve deductions were upheld. Case-Laws Income Tax Tue, 26 Sep 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276724