2016 (1) TMI 578

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....cts are being extracted from ITA No. 690 of 2005. 2. Delay of 147 days in refiling ITA No. 690 of 2005 is condoned. 3. ITA No. 690 of 2005 has been filed by the revenue under Section 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 15.12.2004 (Annexure A-3) passed by the Income Tax Appellate Tribunal, Chandigarh Bench "A", Chandigarh (hereinafter referred to as "the Tribunal") in ITA No. 376/CHANDI/2001 for the assessment year 1997-98. All the appeals except ITA Nos. 209, 295, 553, 883 of 2008 and 331 of 2015 were admitted by this Court vide order dated 29.10.2007 for determination of the following substantial question of law:- "Whether in the facts and circumstances of the case, the learned ITAT was right i....

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....ntial questions of law as referred to in para 6 of the appeal which are to the following effect:- i) Whether in the facts and circumstances of the case, the Ld. ITAT was right in law in holding that the assessee club is a mutual concern disregarding the finding of the A.O. that the financial and administrative control over the assessee club is in the hands of HUDA and that there is no identity between the contributors and the participants of the assessee club? ii) Whether on the facts and circumstances of the case, the Ld. ITAT was right in law in treating the charges received from non-member guests as not liable to tax? iii) Whether in the facts and circumstances of the case, the Ld. ITAT was right in law in holding that the interest....

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....l of the revenue following its earlier decision in the case of the assessee for the assessment year 1995-96. Hence, the present appeal by the revenue. 8. The primary dispute that arises for adjudication in these appeals relates to whether the principle of mutuality would be applicable in the present case or not? 9. Learned counsel for the revenue submitted that there was no concept of mutuality that arises in these cases and, therefore, the Tribunal had erred in applying the doctrine of mutuality in the case of the assessee. Reliance was placed upon clause 5(d) of the Memorandum of Association which is as under:- "5(d). If upon the winding up or dissolution of the society there remains after satisfaction of all its debts and liabilities....

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....y the Tribunal, the contentions of learned counsel for the revenue were opposed by the learned counsel for the assessee. Reliance was placed upon the judgments of the Apex Court in Commissioner of Income Tax v. Bankipur Club Ltd. (1997) 226 ITR 97 (SC), Chelmsford Club v. Commissioner of Income Tax (2000) 243 ITR 89 (SC) of this Court in Commissioner of Income Tax v. Haryana C.M. Relief Fund (2009) 309 ITR 275 (P&H), Delhi High Court in Commissioner of Income Tax v. Delhi Gymkhana Club Ltd. (2011) 339 ITR 525 (Delhi) and Karnataka High Court in Canara Bank Golden Jubilee Staff Welfare Fund v. Deputy Commissioner of Income Tax (2009) 308 ITR 202 (Karn). 12. We have heard learned counsel for the parties. 13. The conditions for invoking the ....