T.U.MEHTA, J. - (1.)THE question which is principally involved in this references is whether the annual subscriptions received by the assessee, who is a mercantile association working at Surat, from its members is liable to be included in its income. This question arises in the following manner.
(2.)THE respondent -assessee is an association known as Shree Jari Merchants Associations, Surat. It was established in the year 1944, and it is an admitted position that it is registered as a trade union under the Trade Unions Act, 1926 (which is hereinafter referred to as 'the Act'). The Tribunal in its order has stated that the respondent -associations is registered under the Societies Registration Act, 1860, but that statement is admittedly wrong.
The assessment years with which we are concerned in this reference are 1962 -63 to 1964 -65. For these years the respondent -assessee filed returns accompanied by statements showings how its business income was worked out. While returning its income, the assessee deducted the annual subscription received from members was exempt from tax. In section (F) of the return of the income, the assessee showed the figure of annual subscription from members but there too a note was added to the effect that the annual subscription received from members was exempted.

(3.)THE respondent is also found to have received entrance fees from its members but these fees were not shown in the return and, were, therefore, not processed by the concerned Income -tax Officer during the course of the assessment.
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