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2017 (1) TMI 104 - HC - Income TaxDoctrine of mutuality application - earning interest income of FDRs and mutual funds arises out of the funds invested with non-members - Held that:- On facts there is no dispute that in the present case FDRs were taken by the assessee club from the banks and the bank cannot be said to be regular members of the assessee club. Therefore, any transaction between the assessee club and the bank could not be said to be the transactions between the members and the interest earned on the amount in the bank would not attract the principle of mutuality. The assessee club had made investments in the mutual fund it was not an investment with the member but with an outsider or a non-member, therefore, the principle of mutuality would not apply. - Decided against the assessee.
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