BANERJEE,J. - (1.) THIS is a reference under s. 66(1) of the Indian IT Act, 1922.
(2.) THE relevant assessment years are 1957-58 and 1958-59, the corresponding previous years being, respectively, the years ended with December 31, 1956, and December 31, 1957. The assessee is an association of persons, known as the Automobile Association of Bengal (now as the Automobile Association of Eastern India). The Association is a mutual concern, run on no profit basis and was formed, inter alia, with the following objects : (a) to establish, maintain and conduct a club for accommodation of its members and their friends and to provide a Club House and other conveniences and generally to afford to members and their friends all the usual privileges, advantages, convenience and accommodation of a club ; (b) to promote the interests of motorists and to provide means of social intercourse amongst them ; (c) to consider and discuss all questions affecting the interests of motorists and the alteration or administration of the law and all police and municipal rules and regulations relating to or in any way affecting them ; (d) to promote an interest in the knowledge and use of automobiles of every kind by lectures, discussions, books and correspondence.
(3.) THE services rendered by the Association to its members, inter alia, are : (i) Free legal advice and defence in approved cases. (ii) Free road breakdown service in Calcutta, Patna and Asansol. (iii) Free touring itineraries. (iv) Free tax and licence "reminder" and "renewal" services. (v) Free services of car attendants at parking places. (vi) Supply of engineers for examination of cars at nominal fees. (vii) Introduction of drivers on no fee basis. (viii) Driving tuition at nominal fees. (ix) Associate Membership of the R. A. C. England at reduced fee. Entrance fee waived. (x) Full privileges of the A. A., England, at reduced fee. Entrance fee waived. (xi) Reciprocal privilege of Western India A. A., A. A. of Upper India, A. A. of Southern India, U. P. A. A. and also of Automobile Club of Ceylon, Automobile Association of Burma and the A. A. of Malaya. ;