THE COMMISSIONER OF INCOME-TAX, WEST BENGAL vs THE CALCUTTA STOCK EXCHANGE ASSOCIATION LTD.

The Supreme Court held that under Section 10(6) of the Indian Income-tax Act, 1922, a trade or professional association is deemed to carry on business if it performs specific services for its members for remuneration related to those services. The Court found that the admission fees and subscriptions paid by members for Authorized Assistants, as well as fees for putting companies on the Quotations List, constituted income assessable to tax as they were directly related to specific services provided by the association. The judgment of the Calcutta High Court was upheld, affirming the taxability of the income received by the respondent company.