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1964 (3) TMI 131

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....n 66(1) of the Indian Income Tax Act, 1922. The assessee is the India Pepper and Spice Trade Association, Cochin. The assessment year 1958. 2. The reference is in pursuance of an application by the assessee. The question referred is : Whether the "laga" collected by the association as per bye-law 207 had been rightly brought to tax under the provisions of the Income Tax Act, 1922 ? B....

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....that it should be brought to tax under section 10 of the Indian Income Tax Act, 1922. 3. Sub-section (1) of section 10 of the Act provides that the tax shall be payable by an assessee under the head "Profits and gains of business profession or vocation" in respect of the profits or gains of any business, profession or vocation carried on by him and sub-section (6) that : A trade, prof....

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....he services which the members, who entered into contracts, received from the association is relatable to the fee of laga paid and but for this payment, the member would not have a claim for the enforcement of the contract, settlement of differences, surveys, arbitrations, appeals and other procedures. We, therefore, hold that the department is right in including this sum as taxable income. The co....

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.... to the specific services performed by the assessee for the members of the association. It cannot be contended that it is a voluntary payment unrelated to the membership of the association. And so far as we can see it is nothing else other than an overall charge for all the services performed by the association in respect of the buying and selling of pepper over and above the separate fees prescri....