G.C.Bharuka, J.

1. This reference has been made by the Income-tax Appellate Tribunal, Patna Bench, Patna, under the provisions of Sec. 256(1) of the Income-tax Act, 1961 (hereinafter to be referred to as "the Act" only), seeking the opinion of this court on the following questions of law :

"(i) Whether, on the facts and in the circumstances of the case, the Tribunal has rightly held that the assessee-club is a mutual concern ?

(ii) Whether, on the facts and in the circumstances of the case, the Tribunal has rightly held that the income derived by the assessee-club from its house property let to its members and their guests is not chargeable to tax ?

(iii) Whether, on the facts and in the circumstances of the case, the Tribunal has rightly held that the income derived by the assessee-club from sale of liquor, etc., to its members and their guests is not taxable in its hands ?"

2. The assessee, Ranchi Club Limited, is a company incorporated under the Indian Companies Act, 1913 . It is limited by guarantee. The memorandum of association of the assessee discloses that its main object is to provide a club house and other conveniences and accommodation for the use of its members