DCIT CIR 3(1), MUMBAI V. THE BOMBAY PRESIDENCY RADIO CLUB LTD, MUMBAI

ITA 1106/MUM/2011

• Counselvise Citation: 110619914 RSA 2011
• Duration Of Justice: 3 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2007-2008
• Appeal Filed On: 07-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARI S RAHEJA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH G , MUMBAI BEFORE SHRI R. C. SHARMA , ACCOUNTANT MEMBER AND SHRI SANJAY GARG , JUDICIAL MEMBER ITA NO. 1106 /M/1 1 ASSESSMENT YEAR: 2007 - 08 DCIT, CIRCLE 3(1), ROOM NO. 607, 6 TH FLOOR, AAYAKAR BHAVAN, MUM BAI 400 0 20 VS. M/S BOMBAY PRESIDENCY RADIO CLUB LIMITED; 157, ARTHUR BUNDER ROAD, COLABA ,MUM MBAI 400 0 05 PAN : AA ACT 494 8 E (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI JAVED AKHTAR REVENUE BY : SHRI HARI S. RAHEJA DATE OF HEARING : 11.02 . 2014 DATE OF PRONOUNCEMENT : 14.02.2014 O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A) DATED 19.11.2010 RELEVANT TO ASS ESSMENT YEAR 2007 - 08 , WHEREIN T HE REVENUE HAS TAKEN FOLLOWING GROUNDS OF APPEAL: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF THE AMOUNTS OF RS. 51,59,683/ - AND RS. 58,93,518/ - BEING RECEIPTS ON ACCOUNT OF HIRE OF PIER, AND RESIDENTIAL ROOM CHARGES RESPECTIVELY WITHOUT APPRECIATING THAT THERE IS NO CONCEPT OF MUTUALITY INVOLVED IN RESPECT OF THESE RECEIPTS. 2. THE APPELLANT PRAYS THAT THE ORDER OF THE CIT(A) ON THE ABOVE GROUNDS BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE COMPANY IS A MEMBE R S CLUB AND IS REGISTERED UNDER THE COMPANIES ACT. D URING THE ASSESSMENT PROCEEDINGS , 2 THE ASSESSING OFFICER NOTED THAT THE ASSESSEE H AD RECEIVED INCOME FROM HIRE OF PIER AND ROOM RENT AS MENTIONED ABOVE IN THE GROUNDS OF APPEAL. T HE ASSESSEE HAD CLAIMED THE SAID RECEIPT AS EXEMP T ON PRINCIPLE OF MUTUALITY. AO , HOWEVER, DID NOT AGREE WITH THE SUBMISSION OF THE ASSESSEE AND ACCORDINGLY T AXED THE SAME. 3. THE LD. CIT(A), HOWEVER, DELETED THE ADDITIONS SO MADE BY THE AO FOLLOWING THE ORDER OF THE ITAT IN THE OWN CASE OF THE ASSESSEE FOR A.Y. 2005 - 06. THE REVENUE IS THUS IN APPEAL BEFORE US. 4 . WE HAVE HEARD THE LD. REPRESENTATIVES OF THE PA RTIES. IT MAY BE OBSERVED THAT THE ISSUE IS AN OLD ISSUE AND THE ADDITIONS MADE BY THE AO ON THIS ACCOUNT IN THE PAST, HAVE BEEN CONTINUOUSLY DELETED BY THE HIGHER AUTHORITIES. FOR THE A.Y.2005 - 06, THE TRIBUNAL VIDE ORDER DT. 29.06.2009 (ITA NO.4221/M/200 8) DELETED THE ADDITIONS MADE BY THE AO ON THIS ISSUE FOLLOWING THE JUDGEMENT OF THE CO - ORDINATE BENCHES OF THE TRIBUNAL IN THE CASE OF THE ASSESSEE FOR A.Y. 1980 - 81 IN ITA NO.4955/M/86 AND FURTHER FOR A.Y . 1990 - 91 IN ITA NO. 9409/M/92. THE ORDER OF THE TR IBUNAL FOR A.Y.2005 - 06 HAS BEEN FURTHER UPHELD BY THE HONBLE JURISDICTIONAL HIGH COURT IN ITA NO. 464 OF 2010 VIDE ORDER DATED 7.6.2011. 5. NO DISTINGUISHING FEATURE HAS BEEN BROUGHT TO OUR NOTICE BY THE LD. DR. IN VIEW OF THE BINDING NATURE OF THE JUDGEM ENT OF THE HONBLE HIGH COURT, WE DO NOT FIND ANY MERIT IN THE APPEAL OF THE REVENUE AND THE SAME IS HEREBY DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14.02. 201 4 . SD/ - SD/ - ( R.C. SHARMA ) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 14.02. 201 4 . 3 COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT ( A) CONCERNED, MUMBAI THE DR G BEN CH //TRUE COPY// [ BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.