This resolution was subsequently varied by another resolution dated 30th January, 1950 and the new resolution provided that the surcharge of eight annas on entrance ticket should be earmarked for local charities and number solely for the Indian Red Cross.
From the Judgment and Order dated 17 4 1969 of the Calcutta High Court in Income Tax Reference No.
But while making assessment for the assessment year 1960 61, the Income Tax Officer took the view that receipts on account of surcharge were revenue receipts in the hands of the assessee and they would number be excluded from the total Income of the assessee merely on the ground that they were applied for charitable purposes.
These receipts on account of surcharge were number treated as trading receipts of the assessee and were number brought to tax as income of the assessee in the assessment years perior to the assess ment year 1960 61.
The Commissioner then moved the Tribunal for stating a case to the High Court on the question of law which arose out of the.
4/8 Enclosure Surcharge RS.
order of the Tribunal.
The slip in respect of the surcharge of eight annas was in the following term Surcharge on admission to The Tollygunge Gymkhana Races for Local Charities Rs.
This was followed by a further appeal to the Tribunal and this time the assessee was suc cessful.
It may be pointed out at this stage that it was number dis puted before the Revenue authorities that the amounts rea lised by way of surcharge had been disbursed to local chari ties and in fact a list was filed showing the local chari ties in whose favour such disbursement had been made.
The Tribunal was of the opinion that a question of law did arise out of its order and hence it formulated a question in the following terms Whether, on the facts and in the circum stances of the case, the Appellate Tribunal was right in holding that the assessees receipts from the surcharge levied on admis sion tickets for purposes of charity companyld number be included in the assessees taxable income for the assessment year 1960 617, and referred it to the High Court for its opinion.
CIVIL APPELLATE JURISDICATION Civil Appeal No.
The Income Tax Officer treated the disbursement of the amounts received on account of surcharge as application of the income belonging to the assessee and he accordingly included these receipts in the total income of the assessee, but allowed rebate under section 15B on the amounts actually disbursed in favour of local charities during the account ing year.
/8/ The receipts from the surcharge were number credited to the profit and loss account but they were carried directly to a separate account styled Charity Account.
the pro ceeds of which were to go to the Red Cross Fund.
The facts giving rise to the appeal are few and may be briefly stated as follows.
The assessee accordingly issued to every entrant to the enclosure on the race companyrse two tickets, one an admission ticket for admis sion to the enclosure of the Club and the other, a separate ticket in respect of the surcharge of eight annas for local charities.
71/65 C. Manchanda and R.N. Sachthey, for the appellant.
578 of 1972.
Sukumar Mitra, D.N. Mukherjee and N.R. Chaudhary, for the respondent.
There is numberdispute between the parties that the admission fee received by the assessee companystitutes trading receipt in the hands of the assessee exigible to tax.
The Judgment of the Court was delivered by BHAGWATI, J. This is an appeal on a certificate of fitness granted by the High Court of Calcutta under section 66A, sub section 2 of the Indian Income tax Act, 1922.
But it appears that on 28th February, 1945 a resolution was passed at the meet ing of the General Body of the Club for levying a surcharge of eight annas over and above the admission fee.,
