Ootacamund Club, Ootacamund V. ITO, Ootacamund

ITA 1529/CHNY/2013

• Counselvise Citation: 152921714 RSA 2013
• Duration Of Justice: 2 year(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 24-06-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 10-07-2013
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNANJCIT
• Assessee Lawyers: JEHANGIR D MISTRY SR
• Keywords: Business income

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI ... , . , , BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.1529 /MDS./2013 ( ! '! / ASSESSMENT YEAR :2010-11) M/S.OOTACAMUND CLUB, CLUB ROAD, P.O. BOX NO.19, OOTACAMUND 643 001. VS. INCOME TAX OFFICER, WARD I(1), OOTACAMUND. PAN AAACO 6965 F ( / APPELLANT ) ( / RESPONDENT ) #$ % & / APPELLANT BY : MR.JEHANGIR D.MISTRY, SR.COUNSEL '(#$ % & / RESPONDENT BY : MR.P.RADHAKRISHNAN,JCIT, D.R ) * % +, / DATE OF HEARING : 24.06.2015 -' % +, /DATE OF PRONOUNCEMENT : 05.08.2015 / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE, A GGRIEVED BY THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)-I, COI MBATORE DATED ITA NO.1529 /MDS/2013 2 15.05.2013 IN ITA NO.119/12-13 PASSED UNDER SEC.14 3(3) READ WITH SECTION SEC. 250 OF THE ACT. 2. THE ASSESSEE HAS RAISED FIVE ELABORATE GROUNDS IN ITS APPEAL, HOWEVER THE CRUX OF THE ISSUE IS THAT THE ASSESSEE IS AGGRIEVED BY THE ORDER OF THE LD. CIT (A), WHO HAD UPHELD THE OR DER OF THE LD. ASSESSING OFFICER, BY HOLDING THAT THE INTEREST REC EIVED FROM THE BANK AND FINANCIAL INSTITUTIONS AMOUNTING TO ` 9,97,960/- ON ACCOUNT OF FIXED DEPOSITS SHALL FALL OUTSIDE THE PURVIEW OF THE PRINCIPLES OF MUTUALITY AND ACCORDINGLY THE SAID SUM SHALL BE LIABLE TO BE TREATED AS TAXABLE INCOME OF THE ASSESSEE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE OOTACAMUND CLUB REGISTERED UNDER SECTION-25 OF THE COMPANIES ACT, FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2010-11 ON 09.10.2010 ADMITTING NIL INCOME. SUBSEQUENTLY, THE CASE WAS SELECTED FOR SCRUTINY AND ORDER U/S.143(3) WAS PASSED ON 29.01.2 013 WHEREIN THE LD. ASSESSING OFFICER BROUGHT TO TAX AN AMOUNT OF ` 9,97,960/- BEING ITA NO.1529 /MDS/2013 3 INTEREST RECEIVED BY THE ASSESSEE COMPANY ON ACCOUN T OF FIXED DEPOSIT HELD BY IT IN BANKS & FINANCIAL INSTITUTION S. 4. WHILE ARRIVING AT SUCH CONCLUSION, THE LD. ASS ESSING OFFICER OBSERVED AS FOLLOWS:- I) THE FACT THAT AN ASSESSEE COMPANY SATISFIES THE NORMS OF MUTUALITY IN RESPECT OF RECEIPTS BY CONTRIBUTIONS F ROM ITS MEMBERS DOES NOT NECESSARILY LEAD TO THE CONCLUSION THAT EVERY ACTIVITY OF THE ASSESSEE SATISFIES THE TEST OF THE MUTUALITY. II) AN ASSESSEE MAY ENGAGE IN CERTAIN ACTIVITIES W HICH CAN BE DESCRIBED AS MUTUAL AND ALSO IN OTHER ACTIVITIES WH ICH ARE NOT MUTUAL. III) THE INTEREST RECEIVED FROM BANKS AND FINANCIAL INSTITUTIONS BY THE ASSESSEE COMPANY ON ACCOUNT OF FIXED DEPOSITS ARE INVESTMENTS MADE WITH THIRD PARTIES AND NOT WITH TH E MEMBERS OF THE ASSESSEE COMPANY. IV) THE DECISION TO INVEST FUNDS IN BANKS AND FINAN CIAL INSTITUTIONS IS A PRUDENT COMMERCIAL DECISION MOTIVATED BY THE DESI RE TO EARN ITA NO.1529 /MDS/2013 4 INTEREST AND THAT WOULD NOT FULFILL THE REQUIREMENT OF THE MUTUALITY. V) WHILE INVESTING THE FUNDS WITH BANKS AND FINANC IAL INSTITUTIONS THE ASSESSEE COMPANY ASSUMED THE CHARACTER OF A CUS TOMER OF THE FINANCIAL INSTITUTIONS AND THE RELATIONSHIP BET WEEN THEM IS THAT OF A BANKER AND ITS CLIENTS. VI) THE PRINCIPLES OF MUTUALITY WILL BE APPLICABLE ONLY WHEN THE INCOME EARNED HAS A DIRECT NEXUS WITH MEMBERS. VII) THE INTEREST INCOME RECEIVED FROM SUCH DEPOSIT S ARE NOT RECEIPTS IN THE FORM OF CONTRIBUTIONS FROM THE MEMB ERS OF THE ASSESSEE COMPANY. IX) THE BANKS AND FINANCIAL INSTITUTIONS ARE NOT TH E MEMBERS OF THE ASSESSEE COMPANY; CONSEQUENTLY THE CONCEPT OF MUTUA LITY DOES NOT ARISE. 5. THE LD. ASSESSING OFFICER ALSO RELIED ON THE DE CISION OF THE HONBLE APEX COURT IN THE CASE OF M/S.BANGALORE CLU B VS. CIT IN CIVIL APPEAL NO.124-125/2007 WITH CIVIL APPEAL NO.272-278 OF 2013 WHEREIN THE HONBLE APEX COURT WHILE ANSWERING THE QUESTION ITA NO.1529 /MDS/2013 5 WHETHER OR NOT THE INTEREST EARNED BY THE ASSESSEE ON THE SURPLUS FUNDS INVESTED IN FIXED DEPOSITS WITH CORPORATE MEM BER BANKS IS EXEMPT FROM LEVY OF INCOME TAX, BASED ON THE PRINCI PLES OF MUTUALITY? IT WAS HELD THAT:- THE SET-UP RESEMBLED THAT OF A MUTUALITY TILL THE S TAGE OF GENERATION OF SURPLUS FUND, HOWEVER, AS SOON AS THESE FUNDS WERE PLACED IN FIXED DEPOSITS WITH BANKS, THE CLOSED FLOW OF FUNDS BETWE EN THE BANKS AND THE CLUB SUFFERED FROM DEFLECTIONS DUE TO EXPOSURE TO C OMMERCIAL BANKING OPERATIONS AND THE MEMBER BANKS USED SUCH DEPOSITS TO ADVANCE LOANS TO THEIR CLIENTS. HENCE, WITH THE FUNDS OF THE MUTUALI TY MEMBER BANKS ENGAGED IN COMMERCIAL OPERATIONS WITH THIRD PARTIES OUTSIDE OF THE MUTUALITY, RUPTURING THE PRIVITY OF MUTUALITY, AND CONSEQUEN TLY, VIOLATING THE ONE TO ONE IDENTITY BETWEEN THE CONTRIBUTORS AND PARTICIPATORS AS MANDATED THE FUNDS DO RETURN TO THE CLUB, BUT BEFORE THAT, THEY ARE EX PENDED ON NON-MEMBERS I.E. THE CLIENTS OF THE BANK AND THIS LOANING OUT O F FUNDS OF THE CLUB BY BANKS TO OUTSIDERS FOR COMMERCIAL REASONS, SNAPS THE LINK OF MUTUALITY- THE AMOUNT OF INTEREST EARNED BY THE ASSESSEE FROM THE FOUR BA NKS WILL NOT FALL WITHIN THE AMBIT OF THE MUTUALITY PRINCIPLE AND WILL THEREFORE , BE ELIGIBLE TO INCOME TAX IN THE HANDS OF THE ASSESSEE CLUB. 6. ON APPEAL, THE LD. CIT (A) CONFIRMED THE ORDER OF THE LD. ASSESSING OFFICER. THE RELEVANT PORTION OF THE ORDE R IS REPRODUCED HEREIN BELOW:- 4. THE MAIN ISSUE IN THE GROUNDS OF APPEAL IS REG ARDING THE ACTION OF THE ASSESSING OFFICER IN TAXING OF THE INTEREST INCOME FROM DEPOSITS AND ITA NO.1529 /MDS/2013 6 INVESTMENTS MADE BY THE APPELLANT. THE APPELLANT S UBMITTED THAT THE INTEREST INCOME FROM DEPOSITS AND INVESTMENTS ARE G OVERNED BY THE PRINCIPLE OF MUTUALITY AND AS SUCH ARE NOT TAXABLE INCOME ON THE INSTITUTE. THE LD. A.R. ALSO ARGUED THAT IT IS NOT THE SURPLUS FUND OF THE CLUB THAT WAS DEPOSITED IN THE BANKS TO EARN INTEREST BUT ONLY TH E ENTRANCE FEE RECEIVED FROM MEMBERS WHICH WAS DIRECTLY TAKEN TO THE CORPUS FUND, WHICH ARE BEING DEPOSITED FROM WHICH THE INCOME HAS BEEN EARNED. 5. I HAVE GONE THROUGH THE SUBMISSIONS MADE BY THE APPELLANT AND ALSO THE ORDER OF THE ASSESSING OFFICER. IN THE RECENT J UDGMENT, THE HONBLE APEX COURT IN ITS DECISION (JANUARY 14, 2013) IN THE CAS E OF BANGALORE CLUB VS. CIT 29 TAXMANN .COM 29 HELD THAT THERE WAS A LACK O F IDENTITY BETWEEN CONTRIBUTORS AND PARTICIPATORS TO FUND AND THUS INT EREST INCOME WAS TAXABLE HAS BUSINESS INCOME. THE APEX COURT OBSERVED THAT T ILL THE STAGE OF GENERATION OF SURPLUS FUND, THE SET UP RESEMBLE THA T OF MUTUALITY. THE FLOW OF MONEY TO AND FROM WAS MAINTAINED WITHIN THE CLOS E CIRCUIT FORMED BY THE BANKS AND THE CLUB AND TO THAT EXTENT NOBODY WHO WA S NOT PRIVY TO THIS MUTUALITY BENEFITTED FROM THE ARRANGEMENT. HOWEVER , AS SOON AS THESE FUNDS WERE PLACED IN FIXED DEPOSIT WITH BANKS, THE CLOSED FLOW OF FUNDS BETWEEN THE BANKS AND THE CLUB SUFFER FROM DEFLECTI ONS DUE TO EXPOSURE TO COMMERCIAL BANKING OPERATIONS. DURING THE COURSE OF THEIR BANKING BUSINESS, THE BANKS USED THEIR DEPOSITS TO ADVANCE LOANS TO THEIR CLIENTS. HENCE, IN THE INSTANT CASE WITH THE FUNDS OF THE MU TUALITY, BANKS WERE ENGAGED IN COMMERCIAL OPERATIONS WITH THIRD PARTIES OUTSIDE OF THE MUTUALITY, RUPTURING THE PRIVITY OF MUTUALITY AND C ONSEQUENTLY VIOLATING THE ONE TO GONE IDENTITY BETWEEN THE CONTRIBUTORS AND P ARTICIPATORS AS MAINTAINED BY THE FIRST CONDITION. HENCE, THE CLAIM OF MUTUALITY IS NOT SATISFIED. FURTHER, THE HONBLE APEX COURT OBSERVE D THAT TO CLAIM AN EXEMPTION FROM TAX ON THE PRINCIPLE OF MUTUALITY, T REATMENT OF THE EXCESS FUNDS MUST BE IN FURTHERANCE OF THE OBJECTS OF THE CLUB WHICH IS NOT THE CASE ITA NO.1529 /MDS/2013 7 HERE. IN THE INSTANT CASE, THE SURPLUS FUNDS WERE NOT USED FOR ANY SPECIFIC SERVICE, INFRASTRUCTURE AND MAINTENANCE OR FOR ANY OTHER DIRECT BENEFIT FOR THE MEMBER OF THE CLUB. THESE WERE TAKEN OUT MUTUA LITY THAT THE BANKS PLACED THE FUNDS AT THE DISPOSAL OF THEIR PARTIES T HUS INITIATING AN INDEPENDENT CONTRACT BETWEEN THE BANK AND THE CLIEN TS OF THE BANK, A THIRD PARTY NOT PRIVY TO THE MUTUALITY. 6. THE FACTS OF THE APPELLANTS CASE CLEARLY FALL IN THE AMBIT OF THE DECISION OF THE HONBLE SUPREME COURT. THE FACTS AT HAND ALS O FAIL TO SATISFY THE THIRD CONDITION OF MUTUALITY PRINCIPLE I.E. IMPOSSIBILITY . THE CONTRIBUTOR SHOULD DERIVE PROFITS FROM CONTRIBUTIONS MADE BY THEMSELVE S TO A FUND WHICH COULD ONLY BE EXPENDED OR RETURNED TO THEMSELVES. IN THE INSTANT CASE, THE FUNDS DID RETURN TO THE CLUB. HOWEVER, BEFORE THAT THEY A RE EXPENDED ON NON- MEMBERS I.E. THE CLIENTS OF THE BANK. THE BANK GEN ERATE REVENUE BY PAYING THE LOWER RATE OF INTEREST TO THE ASSESSEE CLUB, TH AT MAKES DEPOSITS WITH THEM, AND THEN LOAN OUT THE DEPOSITED AMOUNTS AT A HIGHER RATE OF INTEREST TO THIRD PARTIES. THESE LOANING OUT OF FUNDS OF TH E CLUB BY THE BANKS TO OUTSIDERS FOR COMMERCIAL REASONS, IS NOT THE LINK O F MUTUALITY. THE DECISION OF THE HONBLE APEX COURT IS CLEARLY APPLICABLE TO THE FACTS OF THE APPELLANT CLUB. RESPECTFULLY FOLLOWING THE DECISION OF THE A PEX COURT IN THE CASE OF BANGALORE CLUB VS. CIT 29 TAXMANN.COM 29, I CONFIRM THE ACTION OF THE ASSESSING OFFICER IN BRINGING THE INTEREST ON BANK DEPOSITS FOR TAXATION. 7. THE LD. A.R. RELIED IN THE DECISION OF CHENNAI BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE IN ITA NOS.505 TO 5 10/MDS./2009 FOR A.YS 2002-03 TO 2007-08, ORDER DATED 7 TH AUGUST, 2009. HE ARGUED STATING THAT THE ORDER OF THE TRIBUNAL HAD REACHED FINALITY SINCE THE REVENUE DID NOT CARRY THE MATTER ANY FURTHER. IT WA S ALSO ARGUED THAT ITA NO.1529 /MDS/2013 8 IN THE CASE OF BANGALORE CLUB RELIED UPON BY THE RE VENUE THE ISSUE WAS WITH RESPECT TO THE INTEREST EARNED FROM THE FI NANCIAL INSTITUTIONS WHO ARE MEMBERS OF THE ASSESSEE CLUB AND IN THE CAS E OF THE ASSESSEE THE ISSUE WAS WITH RESPECT TO INTEREST EAR NED FROM THE FINANCIAL INSTITUTIONS WHO ARE NOT THE MEMBERS OF T HE ASSESSEE COMPANY. HENCE FACTS WERE NOT IDENTICAL AND THEREFO RE THE DECISION OF THE HONORABLE APEX COURT IN THE CASE OF BANGALOR E CLUB WILL NOT BE APPLICABLE TO THE CASE OF THE ASSESSEE COMPANY AND THE DECISION OF THE TRIBUNAL IN THE ASSESSEES OWN CASE OF THE EARL IER YEARS WOULD BE APPLICABLE WHICH IS ON THE IDENTICAL ISSUE AND IN F AVOUR OF THE ASSESSEE. THE LD. A.R. FURTHER SUBMITTED THAT IN TH E CASE OF THE ASSESSEE COMPANY THE PRINCIPLES OF MUTUALITY WOULD APPLY BECAUSE THE IDLE FUNDS OF THE ASSESSEE COMPANY ARE ONLY KEP T IN FIXED DEPOSITS IN BANKS WHICH ARE MEANT TO BE UTILIZED FO R THE PURPOSE OF THE ASSESSEE COMPANY AND NOT FOR THE PURPOSE OF DIS TRIBUTING DIVIDEND. THE LD. D.R ON THE OTHER HAND RELIED IN T HE DECISION OF THE HONBLE APEX COURT IN THE CASE OF BANGALORE CLUB CI TED SUPRA AND THE DECISION OF THE LD. ASSESSING OFFICER AND THE LD. C IT (A) AND ARGUED IN SUPPORT OF THE SAME. ITA NO.1529 /MDS/2013 9 8. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY PE RUSED THE MATERIALS AVAILABLE ON RECORD. WE DO NOT FIND ANY MERITS IN THE ARGUMENTS SUBMITTED BY THE LD. A.R. THE DECISION O F THE TRIBUNAL IN THE ASSESSEES OWN CASE (SUPRA), THE BENCH HAD FOLL OWED THE DECISION OF THE HONBLE APEX COURT IN THE CASE OF C IT VS. VEGETABLE PRODUCTS LIMITED IN (1973) 88 ITR 192 (SC) WHEREIN IT WAS HELD THAT WHEN TWO VIEWS ARE POSSIBLE ON THE SAME ISSUE BY TH E TWO DIFFERENT HIGH COURTS, THEN THE VIEW IN FAVOUR OF THE ASSESSE E HAS TO BE UPHELD. HOWEVER, IN THE PRESENT SITUATION THE HON BLE APEX COURT IN THE CASE OF BANGALORE CLUB (SUPRA) HAS CATEGORICALL Y HELD THAT THE INTEREST EARNED BY THE ASSESSEE FROM THE FINANCIAL INSTITUTIONS WHO ARE MEMBERS OF THE ASSESSEE CLUB WILL NOT FALL WITH IN THE AMBIT OF MUTUALITY PRINCIPLE AND THEREFORE WILL BE EXIGIBLE TO INCOME TAX IN THE HANDS OF THE ASSESSEE CLUB. THE GIST OF THE ORDER I S REPRODUCED HEREIN BELOW FOR REFERENCE:- (A) FIRSTLY, THE ARRANGEMENT LACKED COMPLETE IDENTI TY BETWEEN THE CONTRIBUTORS AND PARTICIPATORS. TILL THE STAGE OF G ENERATION OF SURPLUS FUNDS, THE FLOW OF MONEY, TO AND FRO, WAS M AINTAINED WITHIN THE CLOSED CIRCUIT FORMED BY THE BANKS AND T HE CLUB, AND ITA NO.1529 /MDS/2013 10 TO THAT EXTENT, NOBODY WHO WAS NOT PRIVY TO THIS MU TUALITY, BENEFITED FROM THE ARRANGEMENT. HOWEVER, AS SOON AS THESE FUNDS WERE PLACED IN FIXED DEPOSITS WITH BANKS, THE CLOSED FLOW OF FUNDS BETWEEN THE BANKS AND THE CLUB SUFFERED FR OM DEFLECTIONS DUE TO EXPOSURE TO COMMERCIAL BANKING O PERATIONS. DURING THE COURSE OF THEIR BANKING BUSINESS, THE ME MBER BANKS USED SUCH DEPOSITS TO ADVANCE LOANS TO THEIR CLIENT S. HENCE, WITH THE FUNDS OF THE MUTUALITY, MEMBER BANKS ENGAG ED IN COMMERCIAL OPERATIONS WITH THIRD PARTIES OUTSIDE OF THE MUTUALITY, RUPTURING THE PRIVITY OF MUTUALITY, AND CONSEQUENTLY, VIOLATING THE ONE TO ONE IDENTITY BETWEEN THE CONTR IBUTORS AND THE PARTICIPATORS AS MANDATED BY THE FIRST CONDITIO N. (B) THE SURPLUS FUNDS WERE NOT USED FOR ANY SPECIFI C SERVICE, INFRASTRUCTURE, AND MAINTENANCE OR FOR ANY OTHER DI RECT BENEFIT FOR THE MEMBERS OF THE CLUB. WHEN THE MEMBER BANKS PLACED THEM AT THE DISPOSAL OF THIRD PARTIES, AN INDEPENDE NT CONTRACT BETWEEN THE BANK AND THE CLIENTS OF THE BANK, A THI RD PARTY, NOT PRIVY TO THE MUTUALITY, WAS INITIATED. THIS CONTRAC T WAS NOT AN ACTIVITY OF THE CLUB IN PURSUIT OF ITS OBJECTIVES. (C) THE PRINCIPLE OF IMPOSSIBILITY THAT CONTRIBUTOR S SHOULD DERIVE PROFITS FROM CONTRIBUTIONS MADE BY THEMSELVES TO A FUND WHICH COULD ONLY BE EXPENDED OR RETURNED TO THEMSELVES RE QUIRES THAT THE FUNDS MUST BE RETURNED TO THE CONTRIBUTORS AS W ELL AS EXPENDED SOLELY ON THE CONTRIBUTORS. ALTHOUGH IN TH E ASSESSEES CASE THE FUNDS DID RETURN TO THE CLUB, BEFORE THAT, THEY WERE ITA NO.1529 /MDS/2013 11 EXPENDED ON NON-MEMBERS, I.E., THE CLIENTS OF THE B ANK. THE LOANING BY THE BANKS OUT OF FUNDS OF THE CLUB TO OU TSIDERS FOR COMMERCIAL REASONS SNAPPED THE LINK OF MUTUALITY. T HE CLUB DID NOT GIVE, OR GET, THE TREATMENT A CLUB GETS FROM IT S MEMBERS ; THE INTERACTION BETWEEN THEM CLEARLY REFLECTED ONE BETWEEN A BANK AND ITS CLIENT. THE INTEREST ACCRUED ON THE SU RPLUS DEPOSITED BY THE CLUB LIKE IN THE CASE OF ANY OTHER DEPOSIT MADE BY AN ACCOUNT HOLDER WITH THE BANK. (D) THE ASSESSEE WAS ALREADY AVAILING OF THE BENEFI T OF THE DOCTRINE OF MUTUALITY IN RESPECT OF THE SURPLUS AMO UNT RECEIVED AS CONTRIBUTIONS OR PRICE FOR SOME OF THE FACILITIE S AVAILED OF BY ITS MEMBERS, BEFORE IT WAS DEPOSITED WITH THE BANK. THE ASSESSEE COULD NOT BE PERMITTED TO CLAIM DOUBLE BEN EFIT OF MUTUALITY. IN THE CASE BEFORE US THE SITUATION IS MUCH WORSE T HAN THE CASE OF BANGALORE CLUB, BECAUSE THE FINANCIAL INSTITUTIONS FROM WHOM THE INTEREST IS RECEIVED BY THE ASSESSEE ARE NOT MEMBER S OF THE ASSESSEE COMPANY BUT THIRD PARTIES. THE RELATION BE TWEEN THEM IS ONLY AS CLIENTS OF THE FINANCIAL INSTITUTIONS AND T HERE IS NO SCOPE OF MUTUALITY EXISTING BETWEEN THEM. FURTHER IT AN INCO ME EARNED BY THE ASSESSEE COMPANY FROM ITS RESOURCES OUT OF THE TRAN SACTIONS WITH THIRD PARTIES WHICH ARE AVAILABLE FOR THE MEMBERS O F THE ASSESSEE ITA NO.1529 /MDS/2013 12 COMPANY FOR THEIR COLLECTIVE ENJOYMENT THOUGH NOT A VAILABLE FOR DISTRIBUTION AS DIVIDEND. FOR THESE REASONS IN THE CASE OF THE BANGALORE CLUB, THE ASSESSEE ITSELF HAD ADMITTED, T HAT THE INTEREST RECEIVED FROM THE FINANCIAL INSTITUTIONS WHO ARE NO T MEMBERS OF THE ASSESSEE CLUB, AS ITS INCOME. THEREFORE, RESPECTFUL LY FOLLOWING THE ELABORATE ORDER OF THE HONBLE APEX COURT, WE HEREB Y CONFIRM THE ORDERS OF THE REVENUE. WE FURTHER MAKE IT CLEAR THA T SINCE IN OUR OPINION THE ISSUE IN THIS CASE BEFORE US IS SQUAREL Y COVERED BY THE DECISION OF THE HONORABLE APEX COURT IN THE CASE BA NGALORE CLUB SUPRA AND THE DECISIONS CITED BY THE LD.A.R ARE NOT DIRECTLY ON THE SUBJECT, THOSE DECISIONS ARE NOT DISCUSSED IN THIS ORDER. 9. IN THE RESULT, THE APPEAL OF ASSESSEE IS DISMISS ED. ORDER PRONOUNCED ON 5 TH AUGUST, 2015 AT CHENNAI. SD/- SD/- ( . . . ) (N.R.S.GANESAN) ( . '#$ %' ) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 5 TH AUGUST, 2015. K S SUNDARAM. % '+./ 0 /'+ /COPY TO: 1. #$ /APPELLANT 2. '(#$ /RESPONDENT 3. ) 1+ () /CIT(A) 4. ) 1+ /CIT 5. /4 '+5 /DR 6. 6! 7* /GF