COMMISSIONER OF INCOME TAX Vs. WESTERN INDIA TURF CLUB LIMITED

JUDGEMENT

(1.) The question raised by this appeal is a short one. The Western India Turf Club was originally an unregistered association; but as from April], 1925, it was converted into a company by being registered under the Indian Companies Act (Act No. VII of 1913) as a company limited by guarantee, the object of the company being to take over the assets, effects and liabilities of the Western India Turf Club. The question raised in these proceedings is, at what rate that company should pay supertax for the tax year commencing on April 1, 1925.

(2.) The enactment chiefly in point is Section 55 of the Indian Income Tax Act, Act No. XI of 1922. That section is in these terms :- In addition to the income-tax charged for any year, there shall be charged levied and paid for that year in respect of the total income of the previous year of any individual, unregistered firm, Hindu undivided family or company, an additional duty of income tax (in this Act referred to as supertax) at the rate or rates laid down for that year by Act of the Indian Legislature.

(3.) On that section two questions may arise, which it is necessary to keep distinct.