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

ITA 331/CHNY/2012

• Counselvise Citation: 33121714 RSA 2012
• Duration Of Justice: 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 10-10-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 16-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JUNIOR
• Keywords: Capital receipt

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. NOS. 331 & 332/MDS/2012 (ASSESSMENT YEARS : 2006-07 & 2008-09) M/S CHENNAI CORPORATE CLUB (P) LTD., 3, CITY CENTRE PLAZA, 4 TH FLOOR, MOUNT ROAD, CHENNAI - 600 034. PAN : AACCC3395H (APPELLANT) V. THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE I(3), CHENNAI - 600 034 . (RESPONDENT) APPELLANT BY : MS. HEMA MURALIKRISHNAN, ADVOCATE RESPONDENT BY : SHRI K.E.B. RENGARAJAN, JUNIOR STANDING COUNSEL DATE OF HEARING : 10.10.2012 DATE OF PRONOUNCEMENT : 10.10.2012 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : THESE ARE APPEALS FILED BY THE ASSESSEE, AGAINST ORDERS IN ITA NO.247/10-11/A-III & ITA NO.249/10-11/A-III DATED 1 9.12.2011 OF COMMISSIONER OF INCOME TAX (APPEALS)-III, CHENNAI, FOR IMPUGNED ASSESSMENT YEARS. ISSUE RAISED IN BOTH THESE APPEA LS IS REGARDING I.T.A. NOS. 331 & 332/MDS/12 2 TREATMENT OF THE AMOUNTS RECEIVED BY THE ASSESSEE F ROM ITS MEMBERS AS NON-REFUNDABLE MEMBERSHIP FEE. ASSESSEE HAD TRE ATED THIS AMOUNT AS CAPITAL RECEIPTS AND CREDITED TO THE CORP US, WHEREAS, ASSESSING OFFICER CONSIDERED IT TO BE REVENUE RECEI PTS TAXABLE FOR THE RELEVANT PREVIOUS YEARS. 2. ASSESSEES APPEALS BEFORE CIT(APPEALS) ON THIS I SSUE, DID NOT MEET WITH ANY SUCCESS. 3. WHEN THE MATTER CAME UP BEFORE US, LEARNED A.R. SUBMITTED THAT SIMILAR ISSUE WAS THERE FOR THE ASSESSMENT YEA RS 2001-02 TO 2005-06 IN WHICH THIS TRIBUNAL HAD CONFIRMED THE VI EW TAKEN BY THE LOWER AUTHORITIES. ASSESSEE HAD MOVED IN APPEAL BE FORE THE JURISDICTIONAL HIGH COURT. HONBLE JURISDICTIONAL HIGH COURT HAD ADMITTED SUCH APPEAL AND THE MATTER IS PENDING DISP OSAL. ACCORDINGLY, A DECLARATION UNDER SECTION 158A WAS F ILED SINCE THE ISSUE INVOLVED WAS SIMILAR AND ONE UNDER CONSIDERAT ION BY THE HONBLE JURISDICTIONAL HIGH COURT. LEARNED A.R. P LACED A DECISION OF CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF C OONOOR CLUB V. ITO IN I.T.A. NO. 2160/MDS/2008 DATED 9 TH AUGUST, 2011, WHERE, ON SIMILAR CIRCUMSTANCES, THE MATTER WAS REMITTED BACK TO THE FILE OF THE A.O. I.T.A. NOS. 331 & 332/MDS/12 3 4. LEARNED D.R. DID NOT RAISE ANY SERIOUS OBJECTION ON THE MATTER BEING REMITTED BACK TO ASSESSING OFFICER. 5. WE HAVE PERUSED THE ORDERS AND HEARD THE CONTEN TIONS. AS MENTIONED BY LEARNED A.R., THE ISSUE REGARDING NON- REFUNDABLE MEMBERSHIP FEE IS BEFORE THE HONBLE JURISDICTIONAL HIGH COURT IN ASSESSEES APPEALS FOR ASSESSMENT YEARS 2001-02 TO 2005-06. ASSESSEE HAD FILED FOR ASSESSMENT YEAR 2007-08 ALSO A DECLARATION UNDER SECTION 158A(1), SO THAT THE APPEAL COULD BE KEPT PENDING AND THE ISSUE KEPT ALIVE TILL THE FINAL DECISION IN THE QUESTION RAISED WAS REACHED. IN OUR OPINION, IN THE CIRCUMSTANCES, WHE N THE SAME QUESTION IS BEFORE THE HONBLE JURISDICTIONAL HIGH COURT IN THE VERY SAME ASSESSEES CASE, FOR AN EARLIER YEAR, IT WOULD BE PRUDENT TO KEEP THE MATTER ALIVE SO AS TO AVOID MULTIPLICITY O F LITIGATION. THEREFORE, WE RESTORE THE ISSUE REGARDING TREATMENT OF NON- REFUNDABLE DEPOSITS FROM THE MEMBERS OF THE ASSESSE E, BACK TO THE FILE OF THE ASSESSING OFFICER, WITH A DIRECTION THA T HE SHALL KEEP IT PENDING TILL THE DISPOSAL OF THE ISSUE BY THE HONB LE JURISDICTIONAL HIGH COURT IN ASSESSEES APPEALS FOR ASSESSMENT YEARS 20 01-02 TO 2005- 06 AND THEREAFTER APPLY THE LAW LAID DOWN BY THE HO NBLE JURISDICTIONAL HIGH COURT IN THIS REGARD. I.T.A. NOS. 331 & 332/MDS/12 4 6. IN THE RESULT, APPEALS OF THE ASSESSEE ARE TREAT ED AS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER WAS PRONOUNCED IN THE COURT ON WEDNESDAY, THE 10 TH OF OCTOBER, 2012, AT CHENNAI. SD/- SD/- (S.S. GODARA) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 10 TH OCTOBER, 2012. KRI. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT(A)- III, CHENNAI (4) CIT, CHENNAI-I, CHENNAI (5) D.R. (6) GUARD FILE