Development of Income Tax Law w.r.t Mutual Associations
The Proposition that no man can make a profit out of himself as recognized by House of Lords (1889) is now well accepted. The principle of mutuality
has been tasted at different judicial levels and as of now enough guidelines are available as to its application and tax treatment.
About the Author: CA. Rajesh Selot, Indore Source: Published in AIFTP Journal for the month of October, 2020
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Posted on: November 2nd, 2020
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IMPROMPTU
Reference is to the two recently published write-ups respectively titled, –
•Development of Income Tax Law w.r.t Mutual Associations
•Mutuality under The Income Tax Act – Origin & Development
The self-same proposition discussed in both, – albeit not for the first time, – is centred on the long drawn- but unduly overstretched beyond its tensile strength- related point of controversy; that is, as to whether what on the first blush is misconstrued to be ‘two persons’ (for taxation purposes) – distinct entities namely, an ‘Association of Persons’ and its constituent ‘Members, are not in reality /essence the one and the same person.
Disgustingly, the subject concept of ‘mutuality’, fundamentally based on THE COMMON LAW PRINCIPLE- developed through ‘judge-made law , as opposed to any law made by the legislature- ought to have been regarded to have been well established and finally accepted over the decades.
Even so, the concept (for short – ‘DoM’), though simple enough to the core to an open mind, hence a non-issue any longer, perforce still remains an extremely maligned and happens to be again and again twisted, thereby giving it a fresh lease of life, with no end in sight.
Suggest, if so wish and minded, to wade through the viewpoints shared time and again through related comments posted on this website itself.
May have MORE to add!
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