Principle of Mutuality/Mutual Concerns

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....s for achieving that object and divide the surplus amongst themselves. The objective should not be profit. The objective should be social security, entertainment, professional development, etc. * If, instead of one person, more than one person * combines themselves into a distinct and separate legal entity for rendering services to themselves by only charging themselves, the resulting surplus ....

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....income from trading so far as it is confined to own members is also exempt. Where a mutual concern derives income from an activity with an outsider, then tax exemption will not apply to such income, i.e., income received from non-members is taxable. * Even a company assessee can claim exemption on the basis of mutuality principal where its memorandum and articles of association provide that the ....