https://www.taxtmi.com/caselaws?id=291826 A concern that is only nominally structured as a mutual benefit society remains taxable where its substance is a banking business carried on through loans to nominal members and profit allocations to shareholders. The earlier Mylapore Hindu Permanent Fund decision was inapplicable because that case involved a genuine mutual scheme, unlike the present arrangement. Payments to shareholders and subscribers were not deductible as interest on borrowed capital under Section 10(2)(iii) of the Income-tax Act, 1922, because they were profit-linked dividends. Prior assessment treatment did not operate as res judicata in income-tax proceedings, and reassessment under Section 34 was upheld. en-us Fri, 22 Oct 1937 00:00:00 +0530 Wed, 25 Nov 2020 16:31:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=291826 A concern that is only nominally structured as a mutual benefit society remains taxable where its substance is a banking business carried on through loans to nominal members and profit allocations to shareholders. The earlier Mylapore Hindu Permanent Fund decision was inapplicable because that case involved a genuine mutual scheme, unlike the present arrangement. Payments to shareholders and subscribers were not deductible as interest on borrowed capital under Section 10(2)(iii) of the Income-tax Act, 1922, because they were profit-linked dividends. Prior assessment treatment did not operate as res judicata in income-tax proceedings, and reassessment under Section 34 was upheld. Case-Laws Income Tax Fri, 22 Oct 1937 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=291826