M/S CHENNAI CORPORATE CLUB (P) LTD, CHENNAI V. ACIT COMPANY CIRCLE 1 (3), CHENNAI

ITA 720/CHNY/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2368 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 27-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS R ANITA
• Assessee Lawyers: MRS VARDINI KARTHIK
• Keywords: Capital receipt
• Section: 201

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: CHENNAI , , BEFORE SHRI V DURGA RAO, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.720/CHNY/2018 /ASSESSMENT YEAR: 2010-11 M/S. CHENNAI CORPORATE CLUB (P) LTD., NO.3, CITY CENTRE PLAZA, IV FLOOR, ANNA SALAI, CHENNAI-600 002. VS. THE ASST. COMMISSIONER OF INCOME TAX, COMPANY CIRCLE-1(3), CHENNAI. [PAN: AACCC 3395H] ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MRS. VARDINI KARTHIK, ADVOCATE /RESPONDENT BY : MRS. R. ANITA, JCIT /DATE OF HEARING : 09.03.2021 / DATE OF PRONOUNCEMENT : 21.04.2021 / O R D E R PER SHRI S. JAYARAMAN, ACCOUNTANT MEMBER : THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-3, CHENNAI, IN ITA NO.57/2013- 14/A-1 DATED 29.12.2017 FOR THE ASSESSMENT YEAR 201 0-11. 2. M/S. CHENNAI CORPORATE CLUB (P) LTD., THE ASSESS EE, RECEIVED NON- REFUNDABLE LIFE MEMBERSHIP FEE FROM ITS MEMBERS AND TREATED THIS AMOUNT AS CAPITAL RECEIPTS AND CREDITED TO THE CORP US. WHILE MAKING THE ITA NO.720/CHNY/2018 :- 2 -: ASSESSMENT FOR A.Y 2010-11, THE A.O CONSIDERED IT T O BE REVENUE RECEIPTS AND TAXED THE SAME. AGGRIEVED, THE ASSESS EE FILED APPEAL BEFORE THE CIT(A) AND THE LD. CIT(A) DISMISSED THE APPEAL. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED THIS APPEAL. 3. THE CASE WAS HEARD THROUGH VIDEO CONFERENCING. T HE LD. A.R SUBMITTED THAT THE SIMILAR ISSUE WAS THERE FOR THE ASSESSMENT YEARS 2001-02 TO 2005-06 IN WHICH THIS TRIBUNAL HAD CONFI RMED THE VIEW TAKEN BY THE LOWER AUTHORITIES. THE ASSESSEE HAD MOVED AN APPEAL BEFORE THE JURISDICTIONAL HIGH COURT. HONBLE JURISDICTIONAL H IGH COURT HAD ADMITTED SUCH APPEAL AND THE MATTER IS PENDING DISPOSAL. ACC ORDINGLY, A DECLARATION UNDER SECTION 158A OF THE ACT WAS FILED SINCE THE ISSUE INVOLVED WAS SIMILAR AND ONE UNDER CONSIDERATION BY THE HONBLE JURISDICTIONAL HIGH COURT. THE LD. A.R PLACED RELI ANCE ON THIS TRIBUNAL DECISIONS IN ITA NOS.331 & 332/MDS/2012 DATED 10.10 .2012 FOR A.YS 2006-07 & 2008-09 AND IN ITA NO. 197/MDS/2012 DATED 26.09.2013 FOR A.Y 2007-08 WHERE, ON SIMILAR CIRCUMSTANCES, THE MA TTER WAS RESTORED BACK TO THE AO. 4. PER CONTRA, THE LD. DR DID NOT RAISE ANY SERIOUS OBJECTION ON THE MATTER BEING REMITTED BACK TO THE A.O. ITA NO.720/CHNY/2018 :- 3 -: 5. WE HAVE PERUSED THE ORDERS AND HEARD THE CONTENT IONS. FOLLOWING THE ORDERS OF THIS TRIBUNAL IN ITA NOS.331 & 332/MD S/2012 DATED 10.10.2012 FOR A.YS 2006-07 & 2008-09 AND IN ITA NO . 197/MDS/2012 DATED 26.09.2013 FOR A.Y 2007-08 IN THE ASSESSEES CASE, WE RESTORE THIS ISSUE BACK TO THE AO FOR AWAITING THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN ASSESSEES APPEALS FOR THE A.YS 2001-02 TO 2005-06 AND THEREAFTER APPLY THE LAW LAID DOWN BY T HE HONBLE JURISDICTIONAL HIGH COURT IN THIS REGARD. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON THE DAY OF 21 ST APRIL, 2021 IN CHENNAI. SD/ - SD/ - ( ) (V DURGA RAO) /JUDICIAL MEMBER ( . ) (S. JAYARAMAN) /ACCOUNTANT MEMBER /CHENNAI, /DATED: 21 ST APRIL, 2021 . EDN, SR. P.S /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( )/CIT(A) 4. /CIT 5. /DR 6. /GF