COMMISSIONER OF INCOME TAX Vs. JARI MERCHANTS ASSOCIATION

JUDGEMENT

(1.) THE question which is principally involved in this references is whether the annual subscriptions received by the assessee, who is a mercantile association working at Surat, from its members is liable to be included in its income. This question arises in the following manner.

(2.) THE respondent -assessee is an association known as Shree Jari Merchants Associations, Surat. It was established in the year 1944, and it is an admitted position that it is registered as a trade union under the Trade Unions Act, 1926 (which is hereinafter referred to as 'the Act'). The Tribunal in its order has stated that the respondent -associations is registered under the Societies Registration Act, 1860, but that statement is admittedly wrong.

(3.) THE respondent is also found to have received entrance fees from its members but these fees were not shown in the return and, were, therefore, not processed by the concerned Income -tax Officer during the course of the assessment.