Dividend from chit funds

Hi, in my opinion chit fund companies fall within the ambit NBFC  and the income from chit fund bussiness is not an income as it is simply a mutual assosiation and in these cases particularly chit fund company is not separate from its members and thus they all are one , and as per income tax act no person can earn income out of itself , putting out a money from left pocket to right pocket cannot be said as earning of income , same is the above case . 

Plz correct me if I am Wrong!