https://www.taxtmi.com/caselaws?id=276913 A concern that is only nominally structured as a members' society, but in substance carries on lending operations and distributes profits to real shareholders, is treated as a banking concern and not as a true mutual benefit society for income-tax purposes. Payments to shareholders and subscribers described as interest were held to be dividends dependent on profits, so they were not deductible as interest on borrowed capital. Prior acceptance of the assessee's status did not bar reassessment, because income-tax assessments are not subject to res judicata. On those principles, reopening under the reassessment provision was upheld. en-us Fri, 22 Oct 1937 00:00:00 +0530 Tue, 20 Nov 2018 12:41:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276913 A concern that is only nominally structured as a members' society, but in substance carries on lending operations and distributes profits to real shareholders, is treated as a banking concern and not as a true mutual benefit society for income-tax purposes. Payments to shareholders and subscribers described as interest were held to be dividends dependent on profits, so they were not deductible as interest on borrowed capital. Prior acceptance of the assessee's status did not bar reassessment, because income-tax assessments are not subject to res judicata. On those principles, reopening under the reassessment provision was upheld. Case-Laws Income Tax Fri, 22 Oct 1937 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276913