SETHURAMAN J.

In this reference made by the Appellate Tribunal under the Income-tax Act, the point relates to the claim for exemption from taxability of the income of the assessee-association. It is not clear as to when this association came into existence ; but it appears to have been started some time prior to 1901 when it got a lease of an open area measuring 200 grounds popularly known as the park fair grounds or People's Park near the Moore Market. The leases of the property were successively for periods of about 10 years. After the Indian Companies Act, 1913, came into force, this association was registered as a company under section 26 of that Act. The following are the objects set out in the memorandum of association (i) to promote and encourage entertainments, athletic sports and games ;

(ii) to promote social intercourse amongst the members of the association ; and

(iii) to do all such other things as are incidental or conducive to attainment of the above objects. Every member of the association undertook to contribute to its assets in the event of winding up a sum not exceeding Rs. 100 for payment of debts and liabilities of the association and the costs, charge