ITO, Jaipur V. JAIPUR CLUB LTD., Jaipur

ITA 93/JPR/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4997 (ITAT-JAIPUR)
• Duration Of Justice: 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 02-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P BHATEJA
• Assessee Lawyers: NEERAJ RATHORE DHK

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH HKKXPUN] YS[KK LNL; DS LE{K BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 93/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2010-11 THE ITO WARD- 2(2), JAIPUR CUKE VS. M/S. JAIPUR CLUB LTD. JACOB ROAD, CIVIL LINES, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AAAAJ 1464 C VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY :SHRI O.P. BHATEJA - DR FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: SHRI NEERAJ RATHORE LQUOKBZ DH RKJH[K@ DATE OF HEARING : 31/10/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 02 /11/2016 VKNS'K@ ORDER PER BHAGCHAND, AM THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)-1, JAIPUR DATED 17-11-2015 FOR THE ASSESSM ENT YEAR 2010-11 RAISING THEREIN FOLLOWING GROUND:- WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN DELETING INC OME RECEIVED BY THE CLUB FROM NON-MEMBERS FOR PROVIDING SPECIFIC FA CILITIES WHEREAS THE PRINCIPLE OF MUTUALITY WAS NOT FOUND AP PLICABLE IN RESPECT OF THESE SERVICES. ITA NO. 93/JP/2016 THE ITO, WARD- 2 (2), JAIPUR VS. M/S. JAIPUR CLUB L TD. , JAIPUR . 2 2.1 AT THE OUTSET OF THE HEARING, THE LD. AR OF THE ASSESSEE PRAYED THAT THIS ISSUE IN QUESTION IS COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDER DATED 19-02-2016 OF COORDINATE BENCH IN ASSESSEE'S OWN CASE IN ITA NO. 764/JP/2014 FOR THE ASSESSMENT YEAR 2011-12. THUS T HE RELIEF MAY BE GRANTED ACCORDINGLY. 2.2 THE LD. DR RELIED ON THE ORDER OF THE AO. 2.3 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS NOTED FROM THE RECORD TH AT SUCH TYPE OF ISSUE HAS ALREADY BEEN DECIDED BY THE COORDINATE BENCH IN ASS ESSEE'S OWN CASE FOR THE ASSESSMENT YEAR 2011-12 VIDE ITS ORDER DATED 19 -02-2016. THE OBSERVATION OF THE COORDINATE BENCH IN ASSESSEE'S O WN CASE IS AS UNDER:- 4.3. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE COORDINATE BENCH OF THE T RIBUNAL IN ASSESSEES OWN CASE IN ITA NOS. 592 & 418/JP/2013 F OR A.Y. 2007-08 AND 2008-09 VIDE ORDER DATED 01.01.2016 HAS HELD AS UNDER :- 5. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. T HE ASSESSEE HAS NOT ISSUED ANY BILL IN THE NAME OF OUTSIDER. IF ANY SERVICE HAS BEEN PROVIDED TO THE GUEST BY THE CLUB, THE BIL LS HAS BEEN ISSUED IN THE NAME OF MEMBERS ONLY. THE LD ASSESSIN G OFFICER HAD NOT SPECIFICALLY POINTED OUT THE RECEIPTS RECEI VED FROM NON MEMBERS. HE SIMPLY MADE DISALLOWANCE ON ESTIMATE BA SIS. THE ASSESSEE HAS PRODUCED COMPLETE BOOKS OF ACCOUNT DUR ING THE ITA NO. 93/JP/2016 THE ITO, WARD- 2 (2), JAIPUR VS. M/S. JAIPUR CLUB L TD. , JAIPUR . 3 ASSESSMENT PROCEEDINGS. THEREFORE, PRINCIPLE LAID D OWN BY THE HON'BLE SUPREME COURT IN THE CASE OF BANKIPUR CLUB LIMITED (SUPRA) IS SQUARELY APPLICABLE ON PRINCIPLE OF MUTU ALITY WHEREIN IT HAS BEEN HELD THAT IN ANY MUTUAL ORGANIZATION, THE RE IS AN ELEMENT OF ALTRUISM, SINCE THE BENEFIT AVAILED BY A MEMBER MAY NOT ALWAYS BE COMMENSURATE WITH HIS CONTRIBUTION. I T WAS FOR THIS REASON THAT EVEN WHERE THERE IS NO RETURN ON T HE CONTRIBUTION, AS IN THE CASE OF AN ASSOCIATION FORM ED FOR THE PURPOSE OF GENERAL PUBLIC UTILITY, MUTUALITY MAY NO T BE LOST. THE FULL BENCH OF THE HONBLE PATNA HIGH COURT IN THE C ASE OF CIT VS. RANCHI CLUB LTD. (SUPRA) HAS ALSO HELD THAT ME RELY BECAUSE THE ASSESSEE COMPANY HAD ENTERED INTO TRANSACTIONS WITH NON MEMBERS AND EARNED PROFITS OUT OF TRANSACTIONS HELD WITH THEM ITS RIGHT TO CLAIM EXEMPTION ON THE PRINCIPLE OF MU TUALITY IN RESPECT OF TRANSACTIONS HELD BY IT WITH ITS MEMBERS WAS NOT LOST. THE ASSESSEE WAS A MUTUAL CONCERN, THE INCOME DERIV ED BY IT FROM ITS HOUSE PROPERTY LET TO ITS MEMBERS AND THEI R GUESTS AND FROM THE SALE OF LIQUOR ETC. TO ITS MEMBERS AND THE IR GUESTS WAS NOT TAXABLE IN ITS HANDS. THE ABOVE PRINCIPLE IS S QUARELY APPLICABLE IN THE CASE OF ASSESSEE, THEREFORE, WE U PHOLD THE ORDER OF THE LD CIT(A) FOR BOTH THE ASSESSMENT YEAR S. RESPECTFULLY FOLLOWING THE DECISION ON SIMILAR FACT S, WE UPHOLD THE ORDER OF LD. CIT (A). 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMIS SED. THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF T HE COORDINATE BENCH IN ASSESSEE'S OWN CASE FOR THE ASSESSMENT YEAR 2011-12 (SUPRA), I FIND NO REASON TO INTERFERE WITH THE ORDER OF THE LD. CIT(A ) WHICH IS SUSTAINED ON THIS ISSUE. THUS THE APPEAL OF THE REVENUE IS DISMI SSED. ITA NO. 93/JP/2016 THE ITO, WARD- 2 (2), JAIPUR VS. M/S. JAIPUR CLUB L TD. , JAIPUR . 4 3.0 IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 02 /11/ 2016. SD/- HKKXPUN ( BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 02/11/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ITO, WARD- 2(2), JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- M/S. JAIPUR CLUB LTD. , JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 93/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ @ ASSISTANT. REGISTRAR