Judgment

SINHA J.: The question for determination in this appeal on a certificate of fitness granted by the High Court of Calcutta, is whether the respondent s admitted income under certain heads, is chargeable to income-tax under the provisions of S. 10(6) of the Indian Income-tax Act (XI of 1922) hereinafter referred to as the Act. The Calcutta High Court, by its judgment dated January 6, 1956, answered the question in the negative, disagreeing with the determination of the Income-tax Appellate Tribunal by its order dated April 23, 1949.

2. The facts of this case, upon which the decision of the appeal depends, may shortly be stated as follows: The respondent is a limited liability company incorporated on June 7, 1933, with a view to taking over the assets and liabilities of an unincorporated association called "The Calcutta Stock Exchange Association" and to carrying on the affairs of the Stock Exchange which had been founded by that Association. The principal object of the respondent Company is to facilitate the transaction of business on the Calcutta Stock Exchange. In view of that objective, the Company had to make rules and by-laws regulating the made and the conditions in, and