Case Law Details
Madras Race Club Vs DCIT (ITAT Chennai)
We noted that there are difference forms of members that are group members, stand members or nonvoting members and temporary members. The stand members or non-voting members are with different types of rights and they are not allowed amenities on race days. Even they are not entitled to participate in meetings or management activities. This is specifically barred in the Article of Association and the relevant clause -4 reads as under:-
“4. On Non-race days Stand Members are entitled to the amenities of the Club and on race days they are entitled on payment of the admission fees fixed by the Committee from time to time to all the privileges of Club members in the Club except that Club members shall have preference over all stand members in regard to balloting for boxes application for luncheons and dinners and on other occasion when accommodation is limited.
Stand Members are entitled to no other privileges and shall not participate in meetings of the club members.”
But, the bye-laws of the club clearly admits stand members or nonvoting members and they have all rights of usage of the club facilities except the above two conditions. It means that they are paying the entrance fee for the purpose of usage of the club and they are very much the members of the club.
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