1960 (11) TMI 23 - SUPREME COURT

Whether the admission fees of members or authorised assistants received by the assessee is taxable income in its hands ?

Held that:- The entrance fees were payable by the trading members elected under the rules and bye-laws of the association, who alone with their associates, could transact business in stocks and shares in the association. Therefore, the body of trading members who paid the entrance fees, and the shareholders among whom the profits were distributed were not identical and thus the element of mutuality was lacking. The High Court correctly answered the question in favour of the respondent