The DCIT, Circle - 4(1)(2), Ahmedabad V. M/s. The Sports Club of Gujarat Ltd., Ahmedabad

ITA 562/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6183 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 09-10-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 06-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VINOD TANWARI
• Assessee Lawyers: S N SOPARKAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH (BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER & SHRI WASEEM AHMED, ACCOUNTANT MEMBER) ITA. NO: 562/AHD/2017 & C.O. NO. 69/AHD/2017 (ASSESSMENT YEAR: 2013-14) D.C.I.T, CIRCLE-4(1)(2), AHMEDABAD M/S. THE SPORTS CLUB OF GUJARAT LTD. SARDAR PATEL STADIUM, NAVRANGPURA, AHMEDABAD-380014 V/S V/S M/S. THE SPORTS CLUB OF GUJARAT LTD. SARDAR PATEL STADIUM, NAVRANGPURA, AHMEDABAD-380014 D.C.I.T, CIRCLE-4(1)(2), AHMEDABAD (APPELLANT) (RESPONDENT) PAN: AAACT7280N APPELLANT BY : SHRI VINOD TANWARI, SR. D. R. RESPONDENT BY : SHRI S.N. SOPARKAR, A.R. ( )/ ORDER DATE OF HEARING : 09 -10-201 9 DATE OF PRONOUNCEMENT : 10 -10-2019 PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. ITA NO. 562/AHD/2017 & C.O. NO. 69/AHD/2017 ARE APP EAL BY THE REVENUE AND CROSS OBJECTION OF THE ASSESSEE DIRECTED AGAINS T THE ORDER OF THE LD. ITA NO. 562 & C.O. NO. 69/AHD/2017 . A.Y. 2013-14 2 CIT(A)-8, AHMEDABAD DATED 19.12.2016 PERTAINING TO A.Y. 2013-14 AND FOLLOWING GROUNDS HAVE BEEN TAKEN: 1)'WHETHER THE LD. CIT(APPEAL) IS RIGHT IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.2,25,08,392/- MADE ON ACCOUNT OF REC EIPTS FROM GUESTS FEES, ROOM CHARGES, HIRE CHARGE AND HOUSE PARTICIPATION. ' 2) 'WHETHER THE ID. CIT(APPEAL) IS RIGHT IN LAW ON FACTS IN DELETING THE DISALLOWANCE OF RS. 6,55,980/- ON ACCOUNT OF U/S. 5 7(III) OF THE ACT.' 2. AT THE TIME OF HEARING, ASSESSEE COMPANY IS A MUTUA L ASSOCIATION NOT ENGAGED IN ANY BUSINESS ACTIVITY AND RUNNING A CLUB FOR ITS ME MBERS FOR PROVIDING SPORTS, ENTERTAINMENT AND EXTRACURRICULAR ACTIVITIES FOR ME MBER HAS NOT ENHANCED THE QUALITY LIFE OF ITS MEMBERS. 3. AT THE TIME OF HEARING, LD. COUNSEL MENTIONED THAT MATTER IN QUESTION SQUARELY COVERED BY THE CO-ORDINATE BENCH IN ASSESSEES OWN CASE IN PRECEDING YEAR FOR SIMILAR FACTS AND CIRCUMSTANCES AND CO-ORDINATE BEN CH GIVEN RELIEF TO THE ASSESSEE FOR SIMILAR GROUNDS OF APPEAL AND RELEVANT PORTION OF THE SAID ITA NO. 603/AHD/2016 & C.O. NO. 51/AHD/2016 IS REPRODUCED: 2. GRIEVANCES RAISED BY THE APPELLANT ARE AS FOLLOWS:- '1. WHETHER THE CIT(A) IS RIGHT IN LAW AND ON FACTS IN DELETING THE ADDITION MADE BY THE AO ON ACCOUNT OF GUEST FEES, HIRE OF RO OMS AND HIRE CHARGES IN RESPECT OF CLUB LAWNS AGGREGATING TO RS. 1,46,86 ,476/-. 2. WHETHER THE CIT(A) IS RIGHT IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE U/S 57(III) OF THE ACT OF RS.5,52,333/ -.' 3. AT THE TIME OF HEARING BEFORE US, LEARNED COUNSE L FOR THE ASSESSEE SUBMITS THAT THE ISSUES IN APPEAL ARE COVERED, IN FAVOUR OF THE ASSESSEE, BY THE SERIES OF ITA NO. 562 & C.O. NO. 69/AHD/2017 . A.Y. 2013-14 3 DECISIONS OF CO-ORDINATE BENCH OF THIS TRIBUNAL IN ASSESSEE'S OWN CASE AS IS EVIDENT FROM THE FOLLOWING JUDICIAL PRECEDENTS:- I) ITA NO. 2166/AHD/2013 & CO NO.21/AHD/2014; ORDER DATED 06.10.2016 II) ITA NOS. 2239/AHD/2011, ITA NO. 1467/AHD/2012, CO NO. 195/AHD/2011 & CO NO.133/AHD/2012; ORDER DATED 20.0 5.2016 III) ITA NO. 296/AHD/2016 & CO NO. 64/AHD/2010; ORD ER DATED 11.01.2013 IV) ITA NO. 4075/AHD/2008 AND ITA NO. 1346/AHD/2010 ; ORDER DATED 10.12.2010 V) ITA NOS. 2793/AHD/2006 AND 1398/AHD/2007; ORDER DATED 30.10.2009 VI) ITA NOS. 2121 & 2122/AHD/1972-73 & CO NOS. 39, 40, 41 & 42/AHD/1974-75; ORDER DATED 21.03.1975 4. LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTHE R HAND, RELIED UPON THE ORDER OF THE ASSESSING OFFICER, BUT COULD NOT POINT OUT ANY BINDING JUDICIAL PRECEDENT CONTRARY TO THE DECISIONS RELIED UPON BY THE LEARNED COUNSEL AS REFERRED ABOVE. IN THIS VIEW OF THE MATTER, AND, RESPECTFULL Y FOLLOWING THE DECISIONS OF CO- ORDINATE BENCH IN ASSESSEE'S OWN CASE (SUPRA), WE D ECLINE TO INTERFERE IN THE MATTER. ACCORDINGLY, RELIEF GRANTED BY THE CIT(A) S TANDS CONFIRMED AND APPROVED. 5. IN THE RESULT, THE APPEAL IS DISMISSED. 6. THE CROSS-OBJECTION FILED BY THE ASSESSEE WAS NO T PRESSED BEFORE US; THEREFORE, THE SAME IS DISMISSED FOR WANT OF PROSECUTION. 7. IN THE RESULT, THE APPEAL AND CROSS- OBJECTION - BOTH ARE DISMISSED. 4. SINCE RELIEF HAS BEEN GRANTED TO THE ASSESSEE BY TH E SERIES OF JUDGMENT OF ITAT, THUS, WE ARE NOT INCLINED TO INTERFERE IN THE ORDER PASSED BY THE LD. CIT(A) AS HE ITA NO. 562 & C.O. NO. 69/AHD/2017 . A.Y. 2013-14 4 HAS PASSED DETAILED AND REASONED ORDER RELYING ON T HE CO-ORDINATE BENCH OF THE ITAT. 5. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMI SSED. C.O. NO. 69/AHD/2017 6. LD. A.R. STATED THAT HE DOES NOT WANT TO PRESS THE CROSS OBJECTION, THEREFORE, SAME IS DISMISSED AS NOT PRESSED. 7. IN THE RESULT, APPEAL AND CROSS OBJECTION FILED BY BOTH THE PARTIES ARE DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 10 - 10- 2019 SD/- SD/- (WASEEM AHMED) (MAHAVIR PRASAD) ACCOUNTANT MEMBER TRUE COPY JUDICIAL MEMBER AHMEDABAD: DATED 10 /10/2019 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD