https://www.taxtmi.com/caselaws?id=49379 The text clarifies the mutuality principle: for exemption to apply the participators in any surplus must be the same persons as contributors to a common fund and returns must operate as a return of contribution, not profit. Where a company limited by shares distributes surplus to persons in their capacity as shareholders (i.e., by virtue of shareholdings rather than contribution) there is no identity between contributors and participators and mutuality fails; such receipts are taxable as business income under the charging provisions. The result favours revenue recovery against the assessee banking concern. en-us Thu, 07 May 1964 00:00:00 +0530 Fri, 22 Aug 2014 12:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49379 The text clarifies the mutuality principle: for exemption to apply the participators in any surplus must be the same persons as contributors to a common fund and returns must operate as a return of contribution, not profit. Where a company limited by shares distributes surplus to persons in their capacity as shareholders (i.e., by virtue of shareholdings rather than contribution) there is no identity between contributors and participators and mutuality fails; such receipts are taxable as business income under the charging provisions. The result favours revenue recovery against the assessee banking concern. Case-Laws Income Tax Thu, 07 May 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49379