CHAKRAVARTTI, C.J.

1. THIS reference comes to us on a case stated by the Tribunal a second time in pursuance of directions given by this Court under s. 66(4) of the Indian IT Act.

2. THE assessee is a limited liability company incorporated on the 7th June, 1933, in order to take over the assets and liabilities of an unincorporated association, called "THE Calcutta Stock Exchange Association" and to conduct the affairs of the stock exchange which that association had founded. THE principal object of the assessee company is to facilitate the transaction of business on the Calcutta Stock Exchange and to make rules and bye-laws, regulating the mode and the conditions in and subject to which the business on the stock exchange shall be transacted. THE company is composed of "members" who may be either individuals or firms, but who, except in the case of parties who had, been members of the unincorporated association, have to be elected before their admission and upon such election, have to acquire a share of the company and pay an entrance fee. Upon their admission, the members have to pay a monthly subscription, as provided for in the bye-laws.

It is not disputed that in regard t