M/s. Chennai Corporate Club (P) Ltd., CHENNAI V. ACIT, CHENNAI

ITA 197/CHNY/2012

• Counselvise Citation: 19721714 RSA 2012
• Duration Of Justice: 1 year(s) 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 24-09-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 01-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI S.S. GODARA, JUDICIAL MEMBER I.T.A. NO. 197/MDS/2012 (ASSESSMENT YEAR : 2007-08) M/S CHENNAI CORPORATE CLUB (P) LTD., 3, CITY CENTRE PLAZA, IV FLOOR, MOUNT ROAD, CHENNAI - 600 002. PAN : AACCC 3395 H (APPELLANT) V. THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE I(3), CHENNAI - 600 034 . (RESPONDENT) APPELLANT BY : SMT. HEMA MURALIKRISHNAN, ADVOCAT E RESPONDENT BY : SHRI S. DAS GUPTA, JCIT DATE OF HEARING : 24.09.2013 DATE OF PRONOUNCEMENT : 26.09.2013 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : THIS APPEAL WAS ORIGINALLY HEARD BY THIS TRIBUNAL ON 19.4.2012. THERE WAS A REQUEST BY THE ASSESSEE FOR KEEPING THE APPEAL PENDING, SINCE THE ISSUE REGARDING NON-REFUNDABLE M EMBERSHIP FEE WAS BEFORE HON'BLE JURISDICTIONAL HIGH COURT IN ASS ESSEES OWN I.T.A. NO. 197/MDS/12 2 APPEALS FOR ASSESSMENT YEARS 2001-02 TO 2005-06. H OWEVER, THIS TRIBUNAL DID NOT ACCEDE TO THIS REQUEST AND DISMISS ED THE APPEAL. 2. ASSESSEE MOVED BEFORE HON'BLE JURISDICTIONAL HIG H COURT THROUGH A WRIT PETITION NO.15672 OF 2012. THEIR LOR DSHIP IN JUDGMENT DATED 29.6.2012 AT PARA 7 HELD AS UNDER:- 7. AGREEING WITH THE VIEW EXPRESSED BY THE BOMBAY HIGH COURT IN THE ABOVE JUDGMENT, THIS COURT IS OF THE VIEW THAT IN THE PRESENT CASE, THE TRIBUNAL HAS NOT FOLL OWED THE PROCEDURE CONTEMPLATED UNDER SECTION 158A OF THE INCOME TAX ACT, 1961 AND NO REASON WAS GIVEN BY THE TRIBUNAL FOR THE DISMISSAL OF THE APPEAL. HENCE, T HIS COURT FINDS IT APPROPRIATE TO SET ASIDE THE ORDER OF THE FIRST RESPONDENT FOR DE NOVO CONSIDERATION. ACCORDINGLY, THE ORDER OF THE FIRST RESPONDENT IS SET ASIDE AND THE MATTER IS REMANDED BACK TO THE INCOME TAX APPELLATE TRIBUN AL, CHENNAI BENCH WITH A DIRECTION TO RE-HEAR THE MATTE R, CONSIDER THE SAME AFTER GIVING OPPORTUNITY TO THE PETITIONER TO SUBSTANTIATE THEIR CASE AND ALSO TO C ONSIDER THE PRINCIPLE ENUNCIATED IN THE BOMBAY HIGH COURT JUDGMENT CITED SUPRA AND PASS ORDERS IN ACCORDANCE WITH LAW. 3. ACCORDINGLY, WE HAVE TAKEN UP THE MATTER ONCE AG AIN. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT FOR ASSESSM ENT YEARS 2006- 07 AND 2008-09, THIS TRIBUNAL IN ASSESSEES APPEAL IN I.T.A. NOS. 331 & 332/MDS/2012 HAD RESTORED THE ISSUE REGARDING TRE ATMENT OF NON- REFUNDABLE FEE OF MEMBERSHIP OF THE ASSESSEE, BACK TO THE FILE OF THE A.O. FOR AWAITING THE DECISION OF HON'BLE JURISDICT IONAL HIGH COURT IN I.T.A. NO. 197/MDS/12 3 ASSESSEES APPEALS FOR ASSESSMENT YEARS 2001-02 TO 2005-06. RELEVANT PARA 5 OF TRIBUNALS ORDER DATED 10 TH OCTOBER, 2012 IS REPRODUCED HEREUNDER:- 5. WE HAVE PERUSED THE ORDERS AND HEARD THE CONTENTIONS. AS MENTIONED BY LEARNED A.R., THE ISS UE REGARDING NON-REFUNDABLE MEMBERSHIP FEE IS BEFORE T HE HONBLE JURISDICTIONAL HIGH COURT IN ASSESSEES APP EALS FOR ASSESSMENT YEARS 2001-02 TO 2005-06. ASSESSEE HAD FILED FOR ASSESSMENT YEAR 2007-08 ALSO A DECLARATION UNDE R SECTION 158A(1), SO THAT THE APPEAL COULD BE KEPT P ENDING AND THE ISSUE KEPT ALIVE TILL THE FINAL DECISION IN THE QUESTION RAISED WAS REACHED. IN OUR OPINION, IN TH E CIRCUMSTANCES, WHEN THE SAME QUESTION IS BEFORE THE HONBLE JURISDICTIONAL HIGH COURT IN THE VERY SAME ASSESSEES CASE, FOR AN EARLIER YEAR, IT WOULD BE P RUDENT TO KEEP THE MATTER ALIVE SO AS TO AVOID MULTIPLICITY O F LITIGATION. THEREFORE, WE RESTORE THE ISSUE REGARD ING TREATMENT OF NON-REFUNDABLE DEPOSITS FROM THE MEMBE RS OF THE ASSESSEE, BACK TO THE FILE OF THE ASSESSING OFFICER, WITH A DIRECTION THAT HE SHALL KEEP IT PENDING TILL THE DISPOSAL OF THE ISSUE BY THE HONBLE JURISDICTIONAL HIGH COURT IN ASSESSEES APPEALS FOR ASSESSMENT YEARS 20 01-02 TO 2005-06 AND THEREAFTER APPLY THE LAW LAID DOWN B Y THE HONBLE JURISDICTIONAL HIGH COURT IN THIS REGARD. ACCORDINGLY, FOR IMPUGNED ASSESSMENT YEAR ALSO, WE RESTORE THE ISSUE REGARDING TREATMENT OF NON-REFUNDABLE FEE FRO M THE MEMBERS OF THE ASSESSEE, BACK TO THE FILE OF THE A.O. WITH SIM ILAR DIRECTIONS AS GIVEN IN ASSESSEES APPEALS FOR 2006-07 AND 2008-09 . I.T.A. NO. 197/MDS/12 4 4. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE COURT ON THURSDAY, THE 26 TH OF SEPTEMBER, 2013, AT CHENNAI. SD/- SD/- (S.S. GODARA) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 26 TH SEPTEMBER, 2013. KRI. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT(A)-III, CHENNAI (4) CIT, CHENNAI-I, CHENNAI (5) D.R. (6) GUARD FILE