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TMI Blog1955 (2) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... on 10(6) of the Indian Income-tax Act, for 1950-51 and 1951-52 assessment years respectively." 2. Section 10(6) of the Indian Income-tax Act, 1922, provides: "A trade, professional or similar association performing specific services for its members for remuneration definitely related to those services shall be deemed for the purpose of this section to carry on business in respect of those services, and the profits and gains therefrom shall be liable to tax accordingly," and the contention of the Alleppey Chamber of Commerce which found favour with the Income-tax Appellate Tribunal, Madras 'B' Bench, was that the two amounts in question do not form remuneration definitely related to specific services performed and so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the unreported case of Seeds Traders' Association Ltd. v. Commissioner of Income-tax, Bombay City) (Referred Case No. 33 of 1952). The Income-tax Officer should therefore delete from the assessments the general collections included in the assessments, already referred to above. 2. The appeals are allowed." 3. It is admitted that only members of the Alleppey Chamber of Commerce can be members of the produce section and there is no dispute on the ground that the services performed are not "services for its members". The only questions, therefore, that arise for consideration are: (1) Can the contribution of six pies per candy on the total turnover of the monthly transactions be considered as "remuneration definite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposit amount at the time of refund or withdrawal as the case may be." On a reading of rules 3 to 7 we entertain no doubts that the admission fee of ₹ 25, the monthly fee of ₹ 5 and the contribution under rule 5 all form part of the levy for the services rendered to the members of the produce section and should be considered as "remuneration definitely related to those services." The contention of the assessee that such is not the case is clearly unsustainable and has to be negatived. 4. The answer to question No. (2) will also depend on the construction of Annexure A which is the only piece of evidence available in this case. The objects with which the produce section was formed as given therein read as follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e section. 6. What we are called upon to decide is whether the latter can be styled as "specific services" within the meaning of section 10(6) of the Indian Income-tax Act, 1922, and we see no reason why they should not be so considered. The word "specific" only means definite, distinctly formulated or stated with precision and we think that the necessary definiteness or precision obtains in this case as all the services we have to adjudge are services in pursuance of objects so clearly defined as objects (a), (b) and (c) of the produce section and not part of the general privileges traceable to an ordinary membership of the Alleppey Chamber of Commerce. The inauguration and continuance of the produce section is itself ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Commissioner." The question as to whether in any particular case "specific services" are being rendered for the collection made and whether that remuneration is definitely related to those services must depend on the facts and circumstances alleged and proved, and on the facts and circumstances of the case before us we have no doubt that the conclusion to be reached is the one that we have indicated in the preceding paragraphs of this judgment.
8. It follows that the question referred has to be answered in the affirmative and we answer it accordingly. The Department will have the costs of this reference from the assessee, advocate's fee ₹ 100.
Reference answered in the affirmative. X X X X Extracts X X X X X X X X Extracts X X X X
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