COMMISSIONER OF INCOME TAX Vs. BELDIH CLUB

JUDGEMENT

(1.) A consolidated statement of the case has been submitted by the Income-tax Appellate Tribunal, Patna Bench B, Patna (hereinafter referred to as "the Tribunal"), under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), referring the following questions of law for the opinion of this court :

(2.) THE relevant facts as regards question No. 1 may be briefly stated. THE assessee-club is Beldih Club. In the three assessment years 1964-65, 1965-66 and 1966-67, the Income-tax Officer held that the assessee-club is not governed by the principle of mutuality and, therefore, the income arising to it will not be exempt from taxation. He, therefore, taxed various incomes of the assessee. He also held that the entrance fees of Rs. 15,000, Rs. 23,900 and Rs. 17,800 are revenue receipts in the hands of the assessee.

(3.) THE Appellate Assistant Commissioner has pointed out that in the assessment year 1966-67, the amount of Rs. 50,000 was received as donation from Mr. J.R.D. Tata who was the President of the assessee-club. This amount was paid ex-gratia from the fund of the Tata Iron and Steel Co. Ltd. (TISCO). THE Appellate Assistant Commissioner has pointed out that in the annual report, the donation was described as follows :