CHAMBER OF COMMERCE Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) -

(2.) THIS is a case which has been stated by the Income Tax Commissioner under Section 66(2) of the Indian Income Tax Act (XI of 1922). The assessee is the Chamber of Commerce at Hapur and the case relates to two assessment years, 1932-33 and 1933-34. The assessee is a company limited by guarantee which was registered in 1923 under Section 26 of the Indian Companies Act.

(3.) THE assessee objected that it was not liable to assessment under the Act; but the Income-tax Officer of Meerut overruled that objection and assessed the company to income-tax in respect to commission or registration fees, declining at the same time to make any allowance on account of the expenses incurred in maintaining a hospital. THE admission fees and annual subscription only were held to be exempt. THE assessee appealed on the following grounds :-