TaxTMI 
TaxTMI 
2018 (1) TMI 1274
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....ing upon the package they have enrolled for. The Revenue felt that the appellants are providing Club or Association services for the period before 01.07.2012 and was not covered under the term public library for the period after 01.07.2012. Two show cause notices were issued dated 24.04.2014 and 17.02.2016 and the same were adjudicated resulting in confirmation of demand along with interest and penalty. Aggrieved from the same, the appellants filed this appeal. 3. The ld. Advocate for the appellants submits that they are a private limited company registered under Companies Act who have their share holders. They have found the library, which is open to general public and the people who give subscription can borrow the books for a limited period. He further argued that the library is not in the nature of club or association service which provides services to its members. The impugned services are not being provided to the share holders, who are the members of the company. The services are being provided to others and hence the provisions of Section 65 (25)(a) cannot be invoked. He also pointed out that the show cause notice has not been issued invoking Section 65(25)(aa). He furth....
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.... amount, but does not include- (i) any body established or constituted by or under any law for the time being in force; (ii) any person or body of persons engaged in the activates of trade unions, promotion of agriculture, horticulture or animal husbandry; or (iii) any person or body of persons engaged in any activity having objectives which are in the nature of public service and are a charitable, religious or political nature; or (iv) any person or body of persons associated with press or media; 65. In this chapter, unless the context otherwise requires,- (25aa) 'club or association', means any person or body of persons providing services, facilities or advantages, primarily to its members, for a subscription or any other amount, but does not include:- (i) anybody established or constituted by or under any law for the time being in force; or (ii) any person or body of persons engaged in the activates of trade unions, promotion of agriculture, horticulture or animal husbandry;or (iii) any person or body of persons engaged in any activity having objectives which are in the nature of public service an....
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....its members cannot be said to be income within the meaning of the Act. But, if such receipts are from sources other than the members, then still can it be said that such receipts are not taxable in the hands of the club ? The answer is obvious. No exemption can be claimed in respect of such receipts on the plea of mutuality. To illustrate, a Members Club may have income by way of interest, security, house property, capital gains and income from other sources, But such income cannot be said to be arising out of the surplus of the receipts from the members of the club." And answered the question in affirmative and questions referred to were as under :- (I) Whether, on the facts and in the circumstances of the case, the Tribunal has rightly held that the assessee club is mutual concern? (II) Whether, on the facts and in the circumstances of the case, the Tribunal has rightly held that the income derived by the assessee club from its house property let to its members and their guests is not chargeable to tax ? (III) Whether, on the facts and in the circumstances of the case, the Tribunal has rightly held that in the income derived by the assessee club from....
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....is a private property, it is sufficient that the place is accessible to the public." 11. In the case of United India Insurance Co. Ltd. Vs. Parvathi Devi and Ors., the Hon'ble High court of Madras had given the following interpretation to the term public place is as under: "15. On a perusal of the above judgment, it is seen that while considering whether a place is a public place or a private place, the Full bench of the Bombay High Court pointed out that, what is necessary is that the place must be accessible to the members of public and be available for their use, enjoyment, avocation or other purpose. In that decision, an accident occurred on a private road in the compound of an industrial establishment. The entry was regulated by passes. In that circumstances of the case, the above mentioned Full Bench had held that: It will have, therefore, to be held that all places where the members of public have an access, for whatever reasons, whether as the right or controlled in any manner whatsoever, would be covered by the definite of public place in Section 2(24) of the Act. The above mentioned decision was relied upon in a recent decision of an....