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Profits and gains of business or profession
Direct Taxation
Sir What is the general principle governing the assessment of incomes of mutual associations such as chambers of commerce, stock brokers' association etc.?
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Section 28(iii) enacts that â??income derived by a trade, professional or similar association from specific services performed for its membersâ?? shall be taxable as business profits. The object is to tax as profit the surplus arising from specific services rendered to members by a mutual trade, professional or similar association which otherwise may not be liable to tax in view of the general principles applicable to mutual concern.
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