| Case ID |
30937f70-c5d9-4190-9550-378e1972bdbc |
| Body |
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| Case Number |
IT REFERENCE No. 157 OF 1965 |
| Decision Date |
Jan 18, 1971 |
| Hearing Date |
Jan 15, 1971 |
| Decision |
The court held that the Indian Tea Planters Association, functioning as a trade association, was indeed rendering specific services to its members for remuneration that is relatable to those services. The Income Tax Officer's assessment of the surpluses resulting from these activities as taxable business profits was upheld. The court emphasized that trade associations which levy charges for specific services should be deemed to be carrying on business and any surplus generated is to be considered as profits and gains liable to tax. The court concluded that the provisions of section 10(6) of the Indian Income-tax Act, 1922 were applicable, thus affirming the revenue's stance on taxation of the association's surpluses. |
| Summary |
This case pertains to the Indian Tea Planters Association's appeal against the Income Tax Officer's assessment of its surpluses as taxable business profits under the Income-tax Act, 1961 and the Indian Income-tax Act, 1922. The court examined the nature of the association's services, which included provision of food grains and medical facilities to its members, and determined that these constituted specific services rendered for remuneration. The ruling affirms the taxability of surpluses generated from such activities, reinforcing the interpretation of relevant sections of the Income-tax Acts. This case is significant for trade associations and highlights the importance of compliance with tax obligations, ensuring that their income from member services is properly assessed and taxed. |
| Court |
Calcutta High Court
|
| Entities Involved |
Commissioner of Income Tax,
Indian Tea Planters Association
|
| Judges |
Sankar Prasad Mitra,
A.N. Sen
|
| Lawyers |
A.P. Choudhury,
P.C. Roy,
A.N. Bose,
Dilip Sen,
Dipak Sen
|
| Petitioners |
Indian Tea Planters Association
|
| Respondents |
Commissioner of Income tax
|
| Citations |
1971 SLD 669,
(1971) 82 ITR 322
|
| Other Citations |
Calcutta Stock Exchange Association Ltd. v. CIT [1956] 29 ITR 687 (Cal.),
CIT v. George Henderson & Co. Ltd. [1967] 66 ITR 622 (SC),
CIT v. Royal Western India Turf Club Ltd. [1953] 24 ITR 551; [1954] SCR 289 (SC),
England & Scottish Joint Co-operative Wholesale Society Ltd. v. Commissioner of Agricultural Income-tax [1948] 16 ITR 270 (PC),
Inland Revenue Commissioners v. Cornish Mutual Assurance Co. [1926] 12 TC 841 (HL),
National Mutual Life Association of Australasia Ltd. v. CIT [1931] 5 ITC 238 (Bom.),
Styles v. New York Life Assurance Co. [1889] 2 TC 460 (HL)
|
| Laws Involved |
Income-tax Act, 1961,
Indian Income-tax Act, 1922
|
| Sections |
28(iii),
10(6)
|