COIMBATORE COSMOPOLITAN CLUB # 200 RACE COURSE Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Tax Case Appeals in T.C.A.Nos.2156 of 2006, 214, 1024 and 1025 of 2007 are filed under section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras 'D' Bench, Chennai, dated 25.11.2005 in I.T.A.Nos.1548, 1550, 1549 and 1551/Mds/2002 for the assessment years 1994-95, 1996-97, 1995-96 and 1997-98 respectively. THE appeals are admitted on the following questions of law in respect of T.C.A.Nos.2156 of 2006 and 214 and 1024 of 2007 and on only question of law No.1 in respect of T.C.A.No.1025 of 2007:

(2.) WHETHER on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the miscellaneous income viz., hall charges, guest charges, mike charges, etc., of the appellant club was not exempt on the principles of mutuality?" 2. The facts of the case in brief are as follows: (a) T.C.A.No,2156 of 2006: The appellant club is a company registered under Section 25 of the Companies Act, 1956. The appellant filed its return of income admitting deficit of Rs.13,26,288/-. The assessing officer while completing the assessment arrived at net surplus of Rs.2,06,372/- and allowed the same to be accumulated under Section 11 of the Income Tax Act. Aggrieved by the assessment order, the appellant filed an appeal before the Commissioner of Income Tax (Appeals) claiming that the interest income from fixed deposits and miscellaneous income consisting of charges received from members towards hall charges for dinner, guest charges, mike charges, telephone calls recovery charges, etc., are not chargeable to tax since appellant company is a mutual concern and claimed exemption under section 11 in the alternative. The Commissioner of Income-tax (Appeals) had dismissed the appeal in common order for assessment years 1994-95 to 1996-97.Aggrieved by the order the appellant filed appeal before the Income Tax Appellate Tribunal and the Tribunal dismissed the appeals. Aggrieved by the same, the present appeal is filed. (b) T.C.A.No,214 of 2007:

(3.) IN view of the above reasoning, the first question of law in the first three appeals in T.C.A.Nos.2156 of 2006, 214 and 1024 of 2007 and the question of law in T.C.A.No.1025 of 2007 are answered against the assessee and in favour of the revenue by following the Division Bench of judgment this Court in the case of MADRAS GYMKHANA CLUB VS. DEPUTY COMMISSIONER OF INCOME-TAX reported in (2009) 226 CTR 179 and the second question of law in the first three appeals has not been answered by this Court and the matter is remitted back to the Tribunal for deciding the issue in the light of the judgment of the Supreme Court in the case of COMMISSIONER OF INCOME TAX VS. BANKIPURCLUB LIMITED reported in 226 ITR 97 at page Nos.97 and 109. Accordingly, T.C.A.Nos.2156 of 2006, 214 and 1024 of 2007 are disposed of and T.C.A.No.1025 of 2007 is dismissed.