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2006 (7) TMI 146 - HC - Income TaxPrinciples of mutuality - "1. Whether, sum received by the assessee as interest from fixed deposit made by the assessee in four banks who are members in the assessee club amounted to its income and constituted a revenue receipt as per the provision of the Income-tax Act? 2. Whether, the principle of mutuality can be made applicable to the fund deposited in the four banks who are also members of the assessee-club, especially when the fund is raised from contribution of several members including the four banks and the interest derived from it is utilized by several members of the assessee club?" - it is clear to us that what has been done by the club is nothing but what could have been done by a customer of a bank. The principle of "no man can trade with himself" is not available in respect of a nationalised bank holding a fixed deposit on behalf of its customer. The relationship is one of a banker and a customer. - questions of law are answered in favour of the Revenue. The order of the Commissioner of Income-tax and the order of the Tribunal are set aside
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