TMI Blog1989 (4) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... service benefit from the association to protect their rights, besides rendering general service to all the members, and if a particular member wanted any specific service to be rendered, separate charges were collected for the same. For the assessment year 1977-78, the Income-tax Officer wanted to subject the assessee to tax on the income derived from the admission fee, periodical subscriptions and specific service charges received from the members. The assessee pleaded that the receipts were exempt from tax on the general principle of mutuality under the head "Others" and it was neither "business" income nor income under the head "Other sources". The Income-tax Officer did not agree with the plea on the ground that in clause 7 of the memor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT v. Kumbakonam Mutual Benefit Fund Ltd. [1964] 53 ITR 241 (SC). CIT v. Shree Jari Merchants Association [1977] 106 ITR 542 (Guj). As against the above, counsel for the assessee has relied upon the following decisions: (1) CIT v. Merchant Navy Club [1974] 96 ITR 261 (AP); (2) CIT v. Madras Race Club [1976] 105 ITR 433 (Mad); (3) CIT v. West Godavari District Rice Millers Association [1984] 150 ITR 394 (AP) in which the Gujarat decision is dissented from ; (4) CIT v. Cochin Oil Merchants' Association [1987] 168 ITR 240 (Ker) ; and (5) CIT v. Nataraj Finance Corporation [1988] 169 ITR 732 (AP) Kumbakonam Mutual Benefit Fund Ltd.'s case [1964] 53 ITR 241 (SC), is distinguishable on facts as there the assessee was a company li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pradesh and Kerala in the cases mentioned above, we dissent from the view taken by the Gujarat High Court. On behalf of the assessee, reference was also made to CIT v. Federation of Indian Chambers of Commerce and Industry [1981] 130 ITR 186, a decision of the Supreme Court. That decision was rendered under section 11 of the Income-tax Act, 1961, in regard to the income derived by the Federation of Indian Chambers of Commerce and Industry from the activities, such as holding the Indian Trade Fair and sponsoring the Conference of the Afro-Asian Organisation. That case is clearly distinguishable. For the reasons recorded above, we answer both the questions in favour of the assessee, in the affirmative. No costs. - - TaxTMI - TM ..... X X X X Extracts X X X X X X X X Extracts X X X X
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