What happens when we do internal linking from a homepage and vice versa?

Let's say you link a keyword from the homepage to an inner page, and your inner page links back to the homepage but with a different keyword or the same keyword.
How will the link flow or which page will have a high chance to rank? Or are there any bad side effects in terms of SEO? Or is it good?

Anyone?

Links from the home page can be very powerful. Make sure that when you are internal linking, you are using anchor text that should be associated with that page. So, for you example with linking out to a page with a given AT and then back to the home page with the same AT, that wouldn't be ideal and would be confusing for Google.