https://www.taxtmi.com/caselaws?id=277356 A members' association operating on mutuality was held not to be carrying on taxable business under Section 10 of the Income-tax Act where its Produce Exchange Department and service fees were funded by member contributions and internal use of facilities. Tender fees, sample-sale receipts, and penalties for rule breaches were treated as domestic receipts arising within the common arrangement, not profits or gains from outside trading. Limited receipts from non-members and the association's wider trade interests did not destroy the mutual character. The receipts were therefore not taxable profits or gains, and the reference was answered in favour of the assessee. en-us Tue, 30 May 1939 00:00:00 +0530 Sat, 01 Dec 2018 16:42:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277356 A members' association operating on mutuality was held not to be carrying on taxable business under Section 10 of the Income-tax Act where its Produce Exchange Department and service fees were funded by member contributions and internal use of facilities. Tender fees, sample-sale receipts, and penalties for rule breaches were treated as domestic receipts arising within the common arrangement, not profits or gains from outside trading. Limited receipts from non-members and the association's wider trade interests did not destroy the mutual character. The receipts were therefore not taxable profits or gains, and the reference was answered in favour of the assessee. Case-Laws Income Tax Tue, 30 May 1939 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277356