The Coimbatore Cosmopolitan Club, Coimbatore V. ACIT, Coimbatore

ITA 1486/CHNY/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58147 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 15-03-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 05-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R B NAIK
• Assessee Lawyers: T S V RAJAGOPAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A. NOS. 1485 & 1489/MDS/2011 A.YS. 2004-05 TO 2008-09 ASSESSEE BY : SHRI T.S.V. R AJAGOPAL, C.A., DEPARTMENT BY : SHRI RB NAIK, CIT, D R. DATE OF HEARING : 15.03.2012 DATE OF PRONOUNCEMENT : 15.03.2012 THE COIMBATORE COSMOPOLITAN CLUB 200, RACE COURSE COIMBATORE 641 018. PAN : AABCT 0892 P (APPELLANT) VS. THE A.C.I.T COIMBATORE (RESPONDENT 2 ITA NOS. 1485 TO 1489/MDS/2011 O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : ITA NO. 1485 TO 1489/MDS/11 ARE APPEALS FILED BY T HE ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX(A)- I, COIMBATORE IN APPEAL NOS. 134, 135, 136, 137 & 139/10-11 DATED 06.06.2011 FOR ASSESSMENT YEARS 2004-05 TO 2008-09 RESPECTIVELY. 2. SHRI RB NAIK, LD. CIT, D.R. REPRESENTED ON BEHAL F OF THE REVENUE AND SHRI TVS RAJAGOPAL, CA, REPRESENTED ON BEHALF OF THE ASSESSEE. 3. IT WAS SUBMITTED BY THE LD. A.R. THAT THE ASSES SEE HAS FILED A DECLARATION U/S 158A(1) OF THE ACT BEFORE THE TRIBU NAL IN SO FAR AS IN ALL APPEALS. THE IDENTICAL ISSUE BEING WHETHER THE ASSESSEE WAS ENTITLED TO EXEMPTION IN RESPECT OF INTEREST INCOME ON ACCOUNT OF PRINCIPLES OF MUTUALITY WAS ALSO A SUBJECT MATTER O F APPEAL BEFORE THE HON'BLE SUPREME COURT IN ASSESSEES OWN CASE IN SLP NO. 12897 3 ITA NOS. 1485 TO 1489/MDS/2011 TO 12900 OF 2010. IT WAS THE SUBMISSION THAT THE I SSUES WERE IN RELATION TO THE FOLLOWING QUESTIONS OF LAW: A. 'WHETHER, ON THE FACTS AND IN THE CIRCUMSTANCES OF THIS CASE, THE INTEREST INCOME OF THE PETITIONER CLUB IS EXEMPT ON THE PRINCIPLES OF MUTUALITY?' B. 'WHETHER, ON THE FACTS AND IN THE CIRCUMSTANCES OF THIS CASE, THE PETITIONER IS ENTITLED TO THE EXEMPTION I N THE LIGHT OF THE DECISIONS OF THIS HON'BLE COURT IN C.L T . , KANPUR V. CAWNPORE CLUB LTD . DATED 05.02.1998 IN C.A . NOS . 4777-78 OF 1989 WITH C.A . NOS . 4534/91, 1773/92, 4303/95, 3840/96 AND 8046/95 (2004) 140 TAXMAN 378 (SC)) (RENDERED AFTER DELINKING OF CASES BY THIS HO N ' BLE COURT IN C.IT . V. BANKIPUR CLUB LTD. ([1997] 226 ITR 97 (SC) AT 100 AND 109) AND THE LATEST ORDER OF THIS HON ' BLE COURT IN C.I . T . V . CANARA BANK GOLDEN JUBILEE STAFFWELFARE FUND I N S.L . P. (CIVIL) 19004/2009 DATED 28.07.2009 ([2010] 320 ITR (ST . ) 23) DISMISSING THE REVENUE'S APPEAL AGAINST THE JUDGMENT OF THE HONBL E KARNATAKA HIGH COURT REPORTED IN ([2009] 308 ITR 20 2 (KAR)) AND CHELMSFORD CLUB V. CIT ([2000] 243 ITR 8 9 (SC))?' 4 ITA NOS. 1485 TO 1489/MDS/2011 C. 'WHETHER, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE HON ' BLE HIGH COURT IS RIGHT IN DISSENTING FROM THE DECISIONS OF THE HON'BLE ANDHRA PRADESH HIGH CO URT I N C.IT . V . NATARAJ FINANCE CORPORATION ([1988] 169 ITR 732 [AP] DISTINGUISHING THE DECISION OF THE HON'BLE KAR NATAKA HIGH COURT IN CANARA BANK GOLDEN JUBILEE STAFF WELF ARE FUND V. DCIT ([2009] 308 ITR 202 (KAR)) AGAINST WHI CH THE REVENUE'S APPEAL BEFORE THIS HON'BLE COURT WAS DISM ISSED ON 28 . 07 . 2009 ([2010] 320 ITR (ST . ) 23)?' D. 'WHETHER, ON THE FACTS AND IN THE CIRCUMSTANCES OF THIS CASE, THE DECISION UNDER APPEAL OF THE HON'BLE HIGH COURT IS VALID IN LAW IN THE LINE OF DECISIONS OF THE HON 'BLE HIGH COURT OF ALLAHABAD DATED 03.02 . 1983 IN CAWNPORE CLUB LTD VS. C . I . T . ([1990] 183 ITR 620 (ALL)), C.I . T . V . CAWNPORE CLUB LTD . DATED 23 . 01 .1985 ([1990] 183 ITR 618 (ALL)) , DIRECTOR OF INCOME TAX (EXEMPTIONS) V . ALL INDIA ORIENTAL BANK OF COMMERCE WELFARE SOCIETY DATED 14.01 . 2003 PER HON ' BLE MR JUSTICE D.K . JAIN (AS HIS LORDSHIP THEN WAS) AND HON'BLE MR. JUSTICE MADAN B LOKUR OF THE HON'BLE DE LHI HIGH COURT ([2003] 184 CTR (DEL) 274 = [2003] 130TAXMAN 575 (DEL)), C.I . T . , KANPUR V. CAWNPORE CLUB LTD., KANPUR DATED 20.01.2005 OF THE HON ' BLE ALLAHABAD HIGH COURT IN I . T . R . 28/1998 WHEREIN THE DECISION OF THE HONBLE COURT DATED 5.2.1998 IN CIT VS. CAWNPORE CLUB LTD IN CA N OS. 5 ITA NOS. 1485 TO 1489/MDS/2011 4777-78 [2004] 140 TAXMAN 378 [SC] WAS FOLLOWED? WHICH HAD BEEN RAISED BY THE ASSESSEE BEFORE THE HO N'BLE SUPREME COURT IN RELATION TO THE APPEALS FILED BEFORE THE H ON'BLE SUPREME COURT FOR ASSESSMENT YEARS 1994-95, 1995-96, 1996-9 7 AND 1997-98. IT WAS THE SUBMISSION THAT THE ASSESSEE HAD FILED D ECLARATION U/S 158A(1) OF THE ACT IN FORM NO. 8 AS PER PROVISION O F RULE 16. IT WAS THE SUBMISSION THAT THE ISSUES IN APPEALS MAY BE RE STORED TO THE FILE OF THE ASSESSING OFFICER TO AWAIT THE DECISION OF T HE HON'BLE SUPREME COURT IN ASSESSEES OWN CASE IN SLP NO. 128 97 TO 12900 OF 2010. 4. THE SAID DECLARATION FILED BY THE ASSESSEE HAD B EEN REFERRED TO THE ASSESSING OFFICER FOR HIS REPORT AND THE ASS ESSING OFFICER THROUGH THE LD. CIT, DR HAS FILED HIS REPORT ON THE DECLARATION U/S 158A(1) OF THE ACT VIDE HIS REPORT NO. AABCT 0892 P /CO 1(1)/CBE DATED 13.3.2012 WHEREIN IT HAS BEEN ACCEPTED THAT T HE ISSUE IN THE APPEALS BEFORE THE TRIBUNAL IN ITA NOS. 1485 TO 148 9/MDS/11 ARE IDENTICAL TO THE ISSUES IN SLP FILED BY THE ASSESSE E BEFORE THE 6 ITA NOS. 1485 TO 1489/MDS/2011 HON'BLE SUPREME COURT FOR ASSESSMENT YEARS 1994-95 TO 1997-98. THE LD. D.R. SUBMITTED THAT HE HAD NO OBJECTION TO THE ADMISSION OF THE DECLARATION U/S 158A(1) OF THE ACT. 5. AFTER CONSIDERING THE SUBMISSIONS OF THE LD. A.R . AND THE REPORT FILED BY THE ASSESSING OFFICER ON THE DECLAR ATION FILED U/S 158A(1) OF THE ACT BY THE ASSESSEE AND CONSIDERING THE SUBMISSION OF THE LD. D.R., WE ACCEPT THE DECLARATION FILED BY TH E ASSESSEE U/S 158A(1) OF THE ACT AND RESTORE THE ISSUES IN THE FI LES TO THE FILE OF THE ASSESSING OFFICER TO AWAIT THE DECISION OF THE HON'BLE SUPREME COURT IN ASSESSEES OWN CASE FOR ASSESSMENT YEARS 1 994-95 TO 1997- 98. THE DECISION OF THE HON'BLE SUPREME COURT IN A SSESSEES OWN CASE FOR ASSESSMENT YEARS 1994-95 TO 1997-98 WOULD BE APPLICABLE TO THE ISSUES IN THE APPEALS FILED BY THE ASSESSEE IN ITA NOS. 1485 TO 1489/MDS/2011. IN THE CIRCUMSTANCES, THE APPEALS O F THE ASSESSEE ARE PARTLY ALLOWED FOR ALLOWED FOR STATISTICAL PURP OSES. 7 ITA NOS. 1485 TO 1489/MDS/2011 6. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 15 TH MARCH, 2012. SD/- SD/- (N.S. SAINI) (GEORGE MATHA N) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 15 TH MARCH, 2012. VL COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT(A), CHENNAI (4) CIT, CHENNAI (5) D.R. (6) GUARD FILE