RAJPATH CLUB LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Tribunal has referred the following question under S. 256(1) of the IT Act, 1961, for our opinion :

(2.) THE assessee is Rajpath Club Limited and the question involved in this reference pertains to the asst. yrs. 1975 76 and 1976 77. The assessee club is incorporated as a company and its main objects are, inter alia, maintaining and carrying on a club house or houses with all usual or suitable accommodation and conveniences and to promote and provide all facilities for sports and games. In 1974 and 1975, the assessee derived interest income of Rs. 11,638 and Rs. 24,492, respectively, on the amounts deposited by it in its accounts in the banks. The question pertains to the said interest income.

(3.) AFTER discussing the matter further, the Court finally held that the income received by the assessee club by way of interest is exigible to tax.