Institution with legal status
edgar sylva
(Querist) 23 September 2013
This query is : Resolved
Being a member of a Gymkhana (Club) in Mumbai I asked what was the legal status of it.
I have been told as follows
"Our Gymkhana was founded in the 1920's through a Government Ordinance which then had the Power to create an 'Institution with legal status' permitting us to acquire property and operate. The operating rules which are updated every few years is our Constitution and is owned by all the members collectively. For the purpose of Income Tax, the Gymkhana is assessed as an Association of persons,where the group has come together for mutual benefit,providing services to members.No income arises on the profits of dealing with its members"
Not a Company, not a Partnership, not a Trust but considered as an AOP by the Income Tax authorities.
Just a handful of members, using the merry go round method of being in control of this Gymkhana is taking in new members charging them lakhs and now sitting on crores which are expended in a very opaque manner.
Can someone throw light on what can be done as to this "institution with legal status founded by Govt Ordinance by the British in mid 1920's.
Kolla Gangadhar
(Expert) 24 September 2013
You obtain copy of Gymkhana was founded in the tear 1920 by Government ordinance. It might have registered under under Society Registration Act, as Association, you must obtain Bye-Laws of Gymkhana (Club). List of members, Executive committee members list.Income Tax Department rightly assessed as an Association of persons. Handful of members do not have any right to collect lakhs rupees provide them new membership. You obtain above 3 documents then you can proceed legally.You write to the Government of M.H. State sorry state of affairs of your Association and the Government also will take action against Members who were involved corrupt practices by collecting lakhs of rupees. contact. Email: kgangadharadvocate@gmail.com send 3 documents for legal opinion.
