ADDITIONAL COMMISSIONER OF INCOME TAX Vs. SECUNDRABAD CLUB

JUDGEMENT

(1.) "Whether, on the facts and in the circumstances of the case, the entrance fees and subscription received from the members of the assessee club were includible in the computation of the total income ?"

(2.) THIS is the question referred to this Court by the Tribunal, Hyderabad, under S. 256(1) of the I. T. Act, 1961. The answer to this question, in our opinion, should be a positive "no". We will now proceed to state the facts and the reasons for the answer we have indicated above.

(3.) FEELING aggrieved by this, the Revenue preferred a further appeal to the Tribunal. Since the AAC restricted the relief he gave only to the entrance fees and the subscription fees paid by the permanent members, the assessee club preferred cross objections claiming that such fees paid by the other members also should be exempt from tax. The Tribunal dismissed the Revenue's appeal and allowed the club's cross objections. Thereupon, at the instance of the Revenue, the question which we have stated above has been referred to this Court for its opinion.