1931 (1) TMI 22

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....nt JUDGMENT The Income-tax Commissioner under the provisions of section 66 of the Income-tax Act (XI of 1922) has referred, for the opinion of the High Court, a question of law. He states that the question is as follows :-"That it should have been held that Maharaj Bag Club was not liable to pay income-tax of any kind either on the immovable property of the club or on its income.1' This ....

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....l object merely because it was the intention of the persons, who formed the limited company, that it should be so applied and because income has hitherto been so applied. The Articles of Association give the members of the Company full power to dispose of the income in any way they choose; apparently they may even, if they choose, pay a dividend; the only result of such payment would be that the A....

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.... imply something received from outside. Reliance is placed on United Service Club, Simla v. The Crown 1 ITC 113 but the basis of this ruling is that the surplus of income over expenditure remained the property of the persons, from whom the income was derived. In the case of the Maharaj Bag Club, the majority of the persons, who provided the income, might be termed members of the Club, but were not....