9911796707
TMI Blog1955 (2) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 1951-52 assessment years respectively. 2. Section 10(6) of the Indian Income-tax Act, 1922, provides: A trade, professional or similar association performing specific services for its members for remuneration definitely related to those services shall be deemed for the purpose of this section to carry on business in respect of those services, and the profits and gains therefrom shall be liable to tax accordingly, and the contention of the Alleppey Chamber of Commerce which found favour with the Income-tax Appellate Tribunal, Madras 'B' Bench, was that the two amounts in question do not form remuneration definitely related to specific services performed and so cannot be taxed under the provisions of sub-section (6) of secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Income-tax, Bombay City) (Referred Case No. 33 of 1952). The Income-tax Officer should therefore delete from the assessments the general collections included in the assessments, already referred to above. 2. The appeals are allowed. 3. It is admitted that only members of the Alleppey Chamber of Commerce can be members of the produce section and there is no dispute on the ground that the services performed are not services for its members . The only questions, therefore, that arise for consideration are: (1) Can the contribution of six pies per candy on the total turnover of the monthly transactions be considered as remuneration definitely related to services performed by the Alleppey Chamber of Commerce; and (2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ules 3 to 7 we entertain no doubts that the admission fee of ₹ 25, the monthly fee of ₹ 5 and the contribution under rule 5 all form part of the levy for the services rendered to the members of the produce section and should be considered as remuneration definitely related to those services. The contention of the assessee that such is not the case is clearly unsustainable and has to be negatived. 4. The answer to question No. (2) will also depend on the construction of Annexure A which is the only piece of evidence available in this case. The objects with which the produce section was formed as given therein read as follows: (a) The main objects of the produce section are to promote, support and protect, the character, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c services within the meaning of section 10(6) of the Indian Income-tax Act, 1922, and we see no reason why they should not be so considered. The word specific only means definite, distinctly formulated or stated with precision and we think that the necessary definiteness or precision obtains in this case as all the services we have to adjudge are services in pursuance of objects so clearly defined as objects (a), (b) and (c) of the produce section and not part of the general privileges traceable to an ordinary membership of the Alleppey Chamber of Commerce. The inauguration and continuance of the produce section is itself a specific service on the part of the Chamber and the provisions of rules for the conduct of trade, the settlement o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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