https://www.taxtmi.com/caselaws?id=441946 An unreasoned disposal order does not create a binding precedent because precedent depends on ratio decidendi under Article 141. Applying the mutuality test, clubs' interest on fixed deposits with banks is taxable: once surplus funds are placed with banks, the receipts arise from commercial dealings with third parties outside the mutual circle, breaking complete identity between contributors and participators. Bangalore Club was affirmed as correctly applying that principle, and Canara Bank was treated as fact-specific and not controlling. The governing principle is that bank fixed deposit interest falls outside mutuality and is chargeable to tax. en-us Thu, 17 Aug 2023 00:00:00 +0530 Wed, 17 Jun 2026 14:25:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=441946 An unreasoned disposal order does not create a binding precedent because precedent depends on ratio decidendi under Article 141. Applying the mutuality test, clubs' interest on fixed deposits with banks is taxable: once surplus funds are placed with banks, the receipts arise from commercial dealings with third parties outside the mutual circle, breaking complete identity between contributors and participators. Bangalore Club was affirmed as correctly applying that principle, and Canara Bank was treated as fact-specific and not controlling. The governing principle is that bank fixed deposit interest falls outside mutuality and is chargeable to tax. Case-Laws Income Tax Thu, 17 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=441946