COMMISSIONER OF INCOME TAX Vs. TOLLYGUNGE CLUB LTD

JUDGEMENT

(1.) The assessee, the Tollygunge Club Ltd., is a company limited by guarantee. It is a social and sporting club and one of its activities is running gymkhana racing, i.e., horse races in which amateur riders take part. It appears that for admission into the enclosures on the race course an, admission fee is charged and the member of the public whether he comes on his own or is a guest of the member of the club has to pay not merely an admission fee, but a surcharge of annas eight and two separate tickets are issued in respect of these amounts. The system of levying such a surcharge commenced from the year 1945, in terms of a resolution dated 28th February, 1945, passed at a meeting of the general committee. The relevant extract is as follows:

(2.) Thereafter, in November, 1950, a further resolution was passed as follows:

(3.) Specimen copies of the tickets are to be found at pages 5-6 of the paper book. One ticket states that the ticket holder has to be admitted and the price is indicated as Rs. 4.50 inclusive of tax. In the body of the said ticket it has been stated that the ticket has been issued subject to the rules and regulations governing the Tollygunge Club Gymkhana Races and also to the Special Condition printed on the back of the ticket. The other ticket states that the surcharge on admission to Tollygunge Gymkhana Races for local charities, Rs. 4-8-0 of the enclosure, it is written on the ticket as surcharge 0-8-0.