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PETITIONER: DELHI STOCK EXCHANGE ASSOCIATION LTD.
Vs.
RESPONDENT: COMMISSIONER OF INCOME TAX, DELHI
DATE OF JUDGMENT: 30/11/1960
BENCH: KAPUR, J.L. BENCH: KAPUR, J.L. HIDAYATULLAH, M. SHAH, J.C.
CITATION: 1961 AIR 1144 1961 SCR (2) 798
ACT: Income-tax--Assessment--Company running a Stock Exchange and dealing in shares--Admission fees of Members and Authorised Assistants--If taxable income.
HEADNOTE: The object with which the appellant company was formed was to promote and regulate the business in shares, stocks and securities etc., and to establish and conduct a Stock Exchange in order to facilitate the transaction of such business. Its capital was divided into shares on which dividend could be earned. it provided a building wherein business was to be transacted under its supervision and control. It made rules for the conduct of business of sale and purchase of shares in the Exchange premises. During the assessment year in question the company’s receipts consisted of certain amounts received as admission fee from Members and Authorised Assistants and the question stated to the High Court for its opinion was whether these fees in the hands of the appellant were taxable income. The High Court answered the question in the affirmative. It held that the appellant was not a mutual society, that dividends could be earned on its share capital, that...