1975 (12) TMI 6

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... umstances of the case, the entrance fees and subscription received from the members of the assessee club were includible in the computation of the total income ? " This is the question referred to this court by the Income-tax Appellate Tribunal, Hyderabad, under s. 256(1) of the I.T. Act, 1961. The answer to this question, in our opinion, should be a positive " no "). We will now proceed to .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... t concern, there was no case for taking into account the entrance fees and subscriptions paid by the permanent members, for purposes of computation of the taxable income of the club. Feeling aggrieved by this, the Revenue preferred a further appeal to the Tribunal. Since the AAC restricted the relief he gave only to the entrance fees and the subscription fees paid by the permanent members, the a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... subscription fees paid by all these members go to the common fund of the club. In other words, all the permanent members of the club are entitled to the assets of the club. It is, therefore, a mutual benefit concern, and not a profit making concern. Its services are limited only to its members and, to some extent, to non-members also. As such, the entrance and subscription fees paid by not only t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X