Interest on Fixed Deposits received by society from Bank is Taxable

In assessee’s case, the bank is not even a member of the society. The nature of the transaction between the assessee and the bank would disqualify application of the principle of mutuality. Therefore, the transactions with the bank who is not even a member of the society cannot be considered as a transaction for which principles of mutuality will apply. Not only on the principles laid down in the subject but also on the fact that the interest was received from a non- member, the principles of mutuality do not apply. The Honourable jurisdictional High Court in the case of CIT Vs. 1. Secundera...