COMMISSIONER OF INCOME TAX Vs. ASPEE DISTRIBUTORS ASSOCIATION

JUDGEMENT

(1.) THE assessee is an association of persons consisting of about 125 distributors of M/s American Spring & Pressing Works Pvt. Ltd. The association was formed sometime in 1971 and had adopted a written constitution at its meeting held on 30th Oct., 1971. The aims and objects of the Association are as follows :

(2.) THE income of the Association consisted of membership fees, interest on deposits and subsidy received from the manufacturing companies. For the asst. yrs. 1973 74 to 1976 77, the question was whether the membership fees received by the assessee came under S. 28(iii) of the IT Act, 1961. The ITO held that the membership fees came under S. 28(iii) of the Act and hence the surplus in the hands of the assessee was liable to be taxed.

(3.) FROM this finding of the Tribunal, the following question of law is referred to us at the instance of the Revenue :