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TMI Blog1964 (4) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act?" 2. The reference relates to the assessment year 1953-54, for which the previous year was the year ending 30th June, 1952. The assessee is a co-operative society (doing banking business) and registered under the cooperative Societies Act of 1912. The bank received during the previous year a sum of Rs. 498 as entrance fees. Exemption was claimed in regard to this amount as being income falling under the head "profits or gains from business, profession or vocation" within the meaning of section 10 of the Indian Income-tax Act, by virtue of the relevant notification dated August 25, 1925, issued under section 60 of the Indian Income-tax Act. The relevant terms of the notification are as follows: "The following classes of income shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10(1) of the Act and section 10(6) and section 12 of the Act. Section 10(1), in so far as it is of immediate relevancy, says: "10. (1) The tax shall be payable by an assessee under the head 'profits and gains of business, profession or vocation' in respect of the profits and gains of any business, profession or vocation carried on by him." 6. Section 10(6) recites: "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." 7. Sub-section (1) of section 12, with which we are concer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o appoint necessary staff and incur other expenditure for the conduct of the business; and to develop, assist and co- ordinate the work of the affiliated supervising unions and to secure for them financial help where necessary and to arrange for the supervision of societies not affiliated to any supervising union and for the inspection of all societies and unions. 10. It is manifest that the bank was started primarily for the purposes of financing co-operative societies and developing and assisting and coordinating the work of the affiliated societies and also to secure finances for the supervising unions. The assessee-society carries on the general business of banking not repugnant to the provisions of the Co-operative Societies Act. 11. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ours is vouched by a judgment of the Supreme Court in Delhi Stock Exchange Association Ltd. v. Commissioner of Income-tax ([1961] 41 I.T.R. 495 (S.C.)) -. It was decided there that the amounts received as admission fee by the Delhi Stock Exchange Association fell within the ambit of the expression "Profits and gains of business, profession or vocation". Their Lordships observed that it is the nature of the business of the company and the profits and the distribution thereof which were the determining factors. 14. In support of their conclusion, their Lordships relied on the following dictum laid down by Rowlatt J. in Liverpool Corn Trade Association v. Monks ([1926] 2 K.B. 110, 121): "I do not see why that amount is not a profit. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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