TMI Blog1963 (8) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... cilities as may be required for the benefit of the company from the Government, the Railway and other authorities and concerns; to secure contracts from foreign purchasers for distribution among the members of the company; to buy and sell minerals on behalf of the mine owner who are members of the company; and to take all such steps as might be necessary to effectively carry out the said objects. It is a company limited by guarantee in which every member of the company has undertaken to contribute to the assets of the company in the event of its being wound up for the payments of the debts and liabilities of the company contracted before he ceases to be a member. 2. Clause 3 of the articles of association runs of follows : A person, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exports during the C.Ys. 1954, 1955 and 1956, whichever is higher. 10(k) : The members of the association will not be entitled for any separate contract with the State Trading Corporation for supply of iron ore based on their past exports in accordance with the State Trading Corporation's trade notice dated May 29, 1957. 5. In accordance with the said contract, the assessee made a distribution of the contracted quantity among its members by its Circular No. 24 dated October 12, 1957. The assessee charged a commissioner of Re. 1 per ton of iron ore sold and moved by its members. During the previous year ended June 30, 1958, the sum so collected by the assessee amounted to ₹ 86,859 without taking into account any expenses in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d before it to show as to whether all the members did utilise their quota which was distributed to them or whether any shortfall in the quota of any one member was made out in any the manner; that the assessee had not challenged the correctness of the statement by the Appellate Assistant Commissioner; that the assessee charged a commission of Re. 1 per ton only on such members, who had availed of the opportunity of selling their iron ore through the assessee; that some of the mine owners had dealt directly with the State Trading corporation and that it was open to some of the mine owners to sell at the pit-head to some intermediaries who, in their turn, sold it to the State Trading Corporation; that the payment of Re. 1 per ton would arise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had subsisting mining licence and were in a position to anticipate in the contract with the State Trading Corporation we have to hold that certain non-participating members would be in a position to share in the benefit of the collection of Re. 1 mentioned above. This contribution and participation are not identical so as to bring in the principle of mutuality also. Considered from this aspect also, the assessment cannot be assailed. We would, therefore, hold that the assessment for the assessment year 1959-60 is proper. 10. The order of the Tribunal ins annexure B and forms part of the case. 11. The question of law is : Whether on the facts and circumstances of the case, the sum of ₹ 86,859 is income liable to be assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of tradesmen or businessmen for the protection or advancement of their common interests. Undoubtedly, the assessee is one such association. 16. The commission in question was earned by the assessee on account of its performing specific services for some of its members and the same is remuneration definitely related to distinct services performed by the assessee for some of its members. The Tribunals below did not find that all the members of the Mine Owners' Association (the assessee) had the benefit of the quota that was distributed. Therefore, it has to be held that the commission in question was paid only by some of its members. But the benefit of the commission realised has gone to all the members. Hence there was no mutuality ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n fees from members for including new companies in the quotation list; the question for decision was whether these three sums of money were assessable to income-tax under section 10(6) of the Act . The Supreme court held that each of the aforesaid sums of money accrued to the assessee on account of its performing specific services for its member or such of them as availed themselves of such services, and the said sums were, accordingly, assessable to incomeax under section 10(6) of the Act as profits and gains derived from carrying on business. 18. It must be remembered that business referred to in section 10(6) is a deemed business and not a business in the real sense of that world. The words performing specific services in sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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