J K ORGANIZATION Vs. INCOME-TAX OFFICER

JUDGEMENT

(1.) This is an appeal filed by the assessee against the order dated 20-2-1981 of the learned Commissioner (Appeals).

(2.) The assessee, J. K. Organisation, Kamla Tower, Kanpur is an AOP. The assessment year in question is 1976-77. With the consent of both the parties, arguments were heard by us only on the preliminary point whether the assessee is constituted on the principles of mutuality and, therefore, not liable to be taxed.

(3.) The facts relevant to the point at issue are as follows. The assessee association is registered under the Indian Trade Unions Act, 1926, whose membership is confined to persons whose undertakings in business, trade, industry, and agriculture form part of or are connected with the J. K. Group of undertakings or who are trustees under a trust made by any member or members thereof. Among the objects of the association (which are specified under rule 3 of its rules and regulations) the following are also included the main object being to regulate the relations between members and their employees and between members and members :