ITO, Panchkula V. M/s Gymkhana Club, Panchkula

ITA 534/CHANDI/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81097 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 16-12-2014
• Assessment Year: 2010-2011
• Appeal Filed On: 23-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JYOTI KUMARI
• Assessee Lawyers: PRERNA GOSWAMY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R.SOOD, ACCOUNTANT MEMBER ITA NO. 534/CHD/2014 ASSESSMENT YEAR: 2010-11 THE INCOME TAX OFFICER, V GYMKHANA CLUB, WARD 3, SECTOR 3, PANCHKULA. PANCHKULA. PAN: AAATG5668E & ITA NO. 535/CHD/2014 ASSESSMENT YEAR: 2010-11 THE INCOME TAX OFFICER, V GYMKHANA CLUB, WARD 3, SECTOR 6, PANCHKULA. PANCHKULA. PAN: AAAAG0115B (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. JYOTI KUMARI RESPONDENT BY : MS. PRERNA GOSWAMY DATE OF HEARING : 16.12.2014 DATE OF PRONOUNCEMENT : 23.12.2014 O R D E R PER BHAVNESH SAINI,JM THIS ORDER SHALL DISPOSE OF BOTH THE APPEALS FILED BY REVENUE ON SIMILAR GROUNDS. 2. IN ITA 534/CHD/2014, REVENUE CHALLENGED THE ORDE R OF LD. CIT(APPEALS), PANCHKULA DATED 25.03.2014 FOR ASSESS MENT YEAR 2010-11 CHALLENGING THE ORDER OF THE LD. CIT(APPEAL S) IN DELETING ADDITION OF RS.15,76,220/- WITHOUT REVERSING THE FI NDINGS OF THE 2 ASSESSING OFFICER THAT THE ASSESSEE CLUB IS NOT A M UTUAL CONCERN AND THE FINANCIAL AND ADMINISTRATIVE CONTROL OVER T HE ASSESSEE'S CLUB IS IN THE HANDS OF HUDA AND THAT THERE IS NO C OMPLETE EQUALITY BETWEEN THE CONTRIBUTORS OF THE CLUB AND T HAT FACTS ARE NOT PROPERLY APPRECIATED FOR RECEIVING GUEST CHARGE S ETC. 3. THE LD. CIT(APPEALS) FOUND THAT THE ISSUE IS COV ERED IN FAVOUR OF THE ASSESSEE IN EARLIER YEARS 2008-09 DAT ED 02.12.2011 AND FOLLOWED BY HIS PREDECESSOR IN ASSESSMENT YEAR 2009-10 DATED 03.10.2012. THE FINDINGS ARE REPRODUCED IN T HE APPELLATE ORDER IN WHICH THE LD. CIT(APPEALS), FOLLOWING THE ORDER OF ITAT CHANDIGARH BENCH IN THE CASE OF GYMKHANA CLUB, SECT OR 6, PANCHKULA FOR ASSESSMENT YEAR 1995-96 DELETED THE A DDITION. THE LD. CIT(APPEALS), FOLLOWING HIS ORDERS FOR ASSE SSMENT YEAR 2008-09 AND 2009-10 ALLOWED THE APPEAL OF THE ASSES SEE. 4. SIMILARLY, IN ITA 535/CHD/2014, REVENUE CHALLENG ED THE ORDER OF LD. CIT(APPEALS), PANCHKULA DATED 25.03.20 14 FOR ASSESSMENT YEAR 2010-11 CHALLENGING THE ORDER OF LD . CIT(APPEALS) IN HOLDING THAT THE ASSESSEE CLUB IS A MUTUAL CONCERN, DISREGARDING THE FINDINGS OF THE ASSESSING OFFICER THAT THE FINANCIAL AND ADMINISTRATIVE CONTROL OVER THE A SSESSEE CLUB IS IN THE HANDS OF HUDA AND THAT THERE IS NO COMPLE TE EQUALITY BETWEEN CONTRIBUTORS OF THE CLUB. THE LD. CIT(APPE ALS) FOUND THAT ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY ORDER OF ITAT CHANDIGARH BENCH IN THE CASE OF THE ASSESSEE FOR EA RLIER YEARS AS WAS FOLLOWED BY LD. CIT(APPEALS) IN ASSESSMENT Y EAR 2008-09 AND 2009-10. THE APPEAL OF THE ASSESSEE WAS ACCORD INGLY, ALLOWED. 3 5. BOTH PARTIES STATED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY ORDER OF ITAT, CHANDIGARH BENCH IN THE CASES OF THE SAME ASSESSEES IN ITA NO. 1083/CHD/2009 AND ITA NO. 1084/CHD/2009 DATED 28.02.2011, COPY OF THE ORDER I S PLACED ON RECORD IN WHICH THE TRIBUNAL ALSO FOLLOWING EARL IER ORDERS, ALLOWED APPEAL OF THE ASSESSEE. 6. CONSIDERING THE ABOVE, IT IS CLEAR THAT SIMILAR ISSUES HAVE BEEN DECIDED BY THE TRIBUNAL IN FAVOUR OF THE ASSES SEE ON IDENTICAL FACTS AND THE ORDERS OF THE TRIBUNAL ARE QUOTED IN THE ORDER OF THE LD. CIT(APPEALS). ONE OF THE COPY OF THE ORDER DATED 28.02.2011 IS FILED ON RECORD FOR ASSESSMENT YEAR 2 006-07 AND 2007-08 FOR THE SAME ASSESSEES IN WHICH THE DEPARTM ENTAL APPEALS ON THE IDENTICAL GROUNDS HAVE BEEN DISMISSE D. THE LD. CIT(APPEALS) WAS, THEREFORE, JUSTIFIED IN HOLDING T HAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEES. THE DEPARTMENT AL APPEALS HAVE NO MERIT AND ARE ACCORDINGLY, DISMISSED. 7. IN THE RESULT, BOTH APPEALS OF THE DEPARTMENT AR E DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD DECEMBER,2014. SD/- SD/- (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 23 RD DECEMBER,2014. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT CHANDIGARH