1939 (5) TMI 16

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..... uce Exchange Department and charging fees for the various services rendered by it to its members amounted to doing business within the meaning of Section 10 of the Act. (2) Whether the amount of ₹ 16,233 realised by the Association by charging a fee of annas eight per each tender of 25 tons under by-law 36 was profit or gain from business on which tax was payable under the above Section or any other Section of the Act. (3) Whether the amount of ₹ 13,686 derived by sale of samples for qualitative analysis under by-laws 45 et seq, in connection with the above Department constituted profit or gains on which tax was payable under the said Section 10 or any other Section of the Act. (4) Whether the amount of ₹ 3, .....

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..... ices. One item which is the subject of dispute, ₹ 16,233, is derived from a fee of annas eight per tender of 25 tons charged from members by the Clearing House on delivery orders; the second item of ₹ 13,686 is derived from the sale of samples tendered against the delivery contracts which members must submit for analysis to the Clearing House, but it appears to me that no distinction can be drawn between the samples ; the property of the members or their money value, when as a matter of mutual convenience and agreement these samples are sold. The third item is a sum of ₹ 3,625 derived from penalties for trading in contravention of the rules and regulations of the Association, and which appear to me to be merely a domestic .....

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..... by the members themselves there is a surplus or saving upon the year's working, does not appear to me to constitute that surplus or saving a profit or gain, and if it is not a profit or gain, then it appears to me to matter not whether the common purpose of the Association is the furtherance of trader or art or sport. Whether a surplus or saving is a profit or gain does not depend upon the objects of the Association, but upon the origin of this surplus or saving, upon the existence of a common endeavour and a common fund. It is the principle of self-help in practice. We have not had referred to us any question of brokers' fees nor any question or interest upon members' deposits, but we think this case can be clearly distingui .....

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