2018 (7) TMI 1086

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....tus of AOP, as against NIL returned income. The main addition of Rs. 18,18,600/- pertains to bank interest income and interest on income taxed refund, tax considering the verdict of Hon'ble Supreme Court in the case of Bangalore Club vs. CIT dated 14th January, 2013. The Ld. CIT(A) dismissed the appeal of assessee. The assessee preferred appeal before ITAT, New Delhi. The assessee submitted that issue has been decided in favour of the assessee by ITAT vide order dated 31st August, 2009 in ITA no. 3708/2008 for assessment year 2004-05 in assessee's own case. The AO noted that the Tribunal considering its order for assessment year 2004-05 remitted back the issue of expenses of Rs. 28,70,532/- to the file of AO for fresh consideration as per l....

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....r filing appeal before the High Court. The AO further noted that subsequent to the decision of the ITAT in the case of assessee for assessment year 2004-05 (supra), the Supreme Court in the case of Banglore Club vs. CIT dated 14th January, 2013 (supra) held that "the amount of interest earned by the assessed from the aforenoted four banks will not fall within the ambit of Principle of Mutuality and will therefore be exigible to Income Tax in the hands of the assessee club". The AO accordingly repeated addition of Rs. 18,18,599/- on account of bank interest and other income. The total income of assessee was computed at Rs. 18,18,600/-. 4. The assessee challenged the addition before Ld. CIT(A). All the submissions of the assessee are noted....

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....nsideration. He has submitted that once addition have been deleted by the ITAT vide its earlier order dated 13th October, 2016, there was no justification to make the addition again in the appeal effect order and further the CIT(A) should not have enhanced the same addition. On the other hand, Ld. DR merely relied upon orders of the authorities below. 7. I have considered rival submission and perused the material on record. It is not in dispute that earlier AO passed the assessment order on 14th February, 2013 and made addition of Rs. 18,18,600/- on account of bank interest income and other interest. The assessee ultimately preferred appeal before the Tribunal in ITA no. 6361/2015 for A.Y. 2010-11 in appeal which is decided by the Tribun....