Rajasekhara Murthy J.—The following question arising out of the common order of the Tribunal for the assessment years 1968-69 and 1969-70 has been referred to this court :

"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee was not an assessable entity and the amounts received by the Fund is not income assessable under the Income Tax Act, 1961 ?"

2. The assessee is the "Bangalore Turb Club Benevolent Fund" which has been constituted by the Banglore Turb Club Benevolent Fund [BTC]. The Fund was administered by the Stewards of the BTC. It was constituted under the BTC Rules. The BTC collected licence fees and fines from the trainers, jockeys and apprentices and transferred those sums to the account of the Fund for the relief of the trainers, jockeys, apprentices, riding boys and their dependents. Rule 182 (of the BTC Rules), under which the Fund was constituted, reads as follows :

"182. All fines imposed under these Rules shall, on realisation, be remitted to the Secretary of the Club.

(i) A fund shall be kept under the name of the Benevolent Fund for the relief of the trainers, jockeys, apprentices, ridin