( 1 ) THIS is a reference under Section 66 (1) of the Indian Income-tax Act, 1922. It relates to the assessment years 1948-49 to 1950-51 and 1954-55, 1955-56, 1957-58 to 1959-60. The relevant accounting years are the calendar years 1947 to 1949, 1953 to 1954 and 1956 to 1958, respectively.

( 2 ) THE assessee is a society registered under the Societies Registration Act, 1860. Its membership is restricted under its rules to "all tea companies under Indian management and Indian proprietors owning tea estates". The annual subscription, according to the statement of the case, is payable by members on the basis of the acreage under tea (Rule 21) and any member can secede from the association after giving three calendar months' notice to the secretary (Rule 22 ). The statement of the case says further that this annual subscription has not been taxed.

( 3 ) THE objects of the association described in Rule 3 are as follows : (a) To cultivate and keep up a spirit of fellow-feeling and united action amongst all Indian tea planters wherever working in India ; (b) To take up all matters of common interest connected with the tea industry in which the Indian planters ar