The Commissioner of Income-tax C R Building Queens Road Bangalore and The Deputy Director of Income-Tax Circle-17(1), C R Building Queens Road Bangalore V. Karnataka Golf Association

ITA/60/2010

AI Insights

This case involves an appeal by the Commissioner of Income-tax and the Deputy Director of Income-Tax against the Karnataka Golf Association concerning the tax exemption status of the association's activities. The primary legal questions revolved around whether the activities conducted by the Karnataka Golf Association, which included playing golf and catering services, qualified as charitable activities exempt from tax under the Income Tax Act, despite these activities not being available to the general public. The Income Tax Appellate Tribunal had previously confirmed the exemption, which was challenged by the appellants in this appeal. The court decided to follow a precedent set by a previous case involving the same parties and similar issues, directing a re-examination of the exemption claims under specific sections of the Income Tax Act.

• Counselvise Citation: [2016] 140 COUNSELVISE.COM (IT) 799228 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 05-01-2016
• Assessment Year: misc
• Other Referred Cases: ITA No.418/2008
• Laws Referred To: Income-tax Act 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: ASHOK A KULAKARNI
• Assessee Lawyers: K V ARAVIND
• Keywords: Charitable activity; Exemption from tax; Income tax appeal; Golf association
• Section: 11; 13; 260-A

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5TH DAY OF JANUARY 2016 PRESENT THE HON’BLE MR.JUSTICE N K PATIL AND THE HON’BLE MRS.JUSTICE S SUJATHA ITA NO.60/2010 BETWEEN 1. The Commissioner of Income-tax C R Building Queens Road Bangalore. 2. The Deputy Director of Income-Tax Circle-17(1), C R Building Queens Road Bangalore …Appellants (By Sri K.V. Aravind, Advocate) AND Karnataka Golf Association No.1, Golf Avenue Kodihalli Opp. Airport Road Bangalore-560 017 ….Respondent (By Sri Ashok A. Kulakarni, Advocate For M/s K.R.Prasad Advocates) This Income-tax appeal is filed under Section 260-A of Income-tax Act 1961, to set aside the order passed by the ITAT, Bangalore in ITA 2 No.417/Bang/2009 and C.O. No.22/Bang/2009, dated 21.08.2009 confirming the order of the Appellate Commissioner and confirm the order passed by the Deputy Director of Income Tax, Circle- 17(1), Bangalore, in the interest of justice and equity. This appeal coming on for Hearing this day, N.K. Patil. J., delivered the following: JUDGMENT This appeal is by the revenue questioning the correctness of the order dated 21.08.2009 passed by the Income Tax Appellate Tribunal in ITA No.417/Bang/2009 in C.O.No.22/Bang/2009 confirming the order of Appellate Commissioner and confirm the order passed by the Deputy Director of Income Tax, Circle – 17(1), Bangalore raising the following substantial questions of law for our consideration: (1) Whether the Appellate Authorities were correct in holding that the activity of playing golf and other activities like catering income, membership fee, being promoted by the assessee to its members is a charitable activity and entitled to exemption from tax even though the assessee’s activities is not available to the general public? (2) Whether the Appellate Authorities were correct in holding that the entire 3 income of the assessee including such income earned from activities made available to non-members is also exempt from Income Tax? 2. We have heard learned counsel appearing for the appellants and the learned counsel appearing for the respondent. 3. Both the counsel appearing for the parties at the outset submit that the relief sought in this appeal is squarely covered by a Division Bench Judgment of this Court in ITA No.418/2008 disposed of on 01.12.2010 filed by the Commissioner of Income Tax and Another against Karnataka Golf Association (AOP). Therefore, they submit that following the said Judgment, the instant appeal may also be disposed off, directing the Assessing Officer to consider the entire matter as to whether the exemptions claimed by assessee could be allowed or not with reference to Sections 11 and 13 of the Income Tax Act? 4 4. The submissions of the learned counsel are placed on record. 5. The appeal filed by the appellants is allowed in part following the Judgment of the Division Bench of this Court dated 01.12.2010 passed in ITA No.418/2008, without answering the substantial questions of law and directing the Assessing Officer to consider the entire matter afresh by examining as to whether the exemptions claimed by assessee could be allowed or not with reference to Sections 11 and 13 of the Act. All contentions urged in this appeal are left open. Ordered accordingly. Sd/- JUDGE Sd/- JUDGE brn "