Surplus returned from Common contributed Fund cannot be treated as profit

Savitri Phule Mahila Bahu Uuddeshiya Sahakari Samiti Ltd. Vs ACIT (ITAT Jaipur)  Hon’ble Supreme Court in Chelmsford Club Vs CIT 243 ITR 89(SC) had held that what is taxed is, the income, “profits or gains” earned or “arising”, “accruing” to a “person”. Where a number of persons combine together and contribute to a common fund for the financing of some venture or object and in this respect have no dealings or relations with any outside body, then any surplus returned to those persons cannot be regarded in any sense as profit. There must be complet...