Judgment

BHAGWATI, J. - This is an appeal on a certificate of fitness granted by the High Court of Calcutta under S.66-A, sub-s. (2) of the Indian Income tax Act, 1922. The facts giving rise to the appeal are few and may be briefly stated as follows.

2. The assessee is Tollygunge Club Ltd., a company limited by guarantee, and it owns a social and sports club one of whose activities consists of conducting Gymkhana races, that is, horse races with amateur riders. It charges for admission into the enclosure of the Club at the time of the races, admission fee to the guests introduced by the members of the Club as well as to the members of the public. There is no dispute between the parties that the admission fee received by the assessee constitute trading receipt in the hands of the assessee exigible to tax. But it appears that on 28th February, 1945, a resolution was passed at the meeting of the General Body of the Club for levying a surcharge of eight annas over and above the admission fee, the proceeds of which were to go to the Red Cross Fund. This resolution was subsequently varied by another resolution dated 30th January, 1950 and the new resolution provided that the surcharge of e