Delhi High Court: Rent from Club Members Not Taxable

The High Court of Delhi held that rent receipts from members of an assessee-club were not assessable to income tax under the doctrine of mutuality. Additionally, income from a swimming pool and stadium in Bombay was deemed taxable under the head 'Business,' not 'Income from house property.' The judgment favored the assessee in both references under section 256(1) of the Income-tax Act, 1961 for the assessment year 1972-73.

---

---

The High Court of Delhi ruled on two references under section 256(1) of the Income-tax Act, 1961, for the assessment year 1972-73. The court held that rent receipts from members of an assessee-club were not assessable to income tax based on the doctrine of mutuality. The court also determined that income from a swimming pool and stadium in Bombay should be taxed under the head 'Business,' not 'Income from house property.' The judgment favored the assessee in both instances.

---