SABYASACHI MUKHARJI, J.

( 1 ) THE assessee, the Tollygunge Club Ltd. , is a company limited by guarantee. It is a social and sporting club and one of its activities is running gymkhana racing, i. e. , horse races in which amateur riders take part. It appears that for admission into the enclosures on the race course an, admission fee is charged and the member of the public whether he comes on his own or is a guest of the member of the club has to pay not merely an admission fee, but a surcharge of annas eight and two separate tickets are issued in respect of these amounts. The system of levying such a surcharge commenced from the year 1945, in terms of a resolution dated 28th February, 1945, passed at a meeting of the general committee. The relevant extract is as follows:"13. (c) It was decided to charge a flat rate of Rs. 4-8-0 admission to the races, plus a surcharge of 0-8-0 which will go to the Red Cross fund. The price of admission for officers and other ranks to remain at Rs. 5 (rupees 4-8-0 plus 0-8-0 surcharge) and Re. 1 respectively. "

( 2 ) THEREAFTER, in November, 1950, a further resolution was passed as follows:"9. (a) Gymkhana.--The following recommendations of the sen

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