TaxTMI 
TaxTMI 
2019 (3) TMI 793
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....there is no mistake apparent from record to invoke the provisions of section 154 of the I.T. Act by ADIT(Exemptions) vide order dated 03/06/2008. 3. The facts of the case are that the Tribunal vide its order dated 5.3.2004 directed to tax receipts from non members and TMBT's of the assessee club on the basis of separate sets of books of account maintained by them. Accordingly, effect for the said order was given on 14.03.2007 treating the entire amount of income determined as exempt from tax. Then, finding that no separate sets of books of account to distinguish the receipts from members and non members had been maintained for the years prior to AY 1998-99 and in those assessments, the Assessing Officer treated only 50% of the receipts as ....
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.... it is not the case of the assessee that they actually had maintained separate sets of books of account to distinguish the receipts from members and non members during the year under consideration. It is also not the case of the assessee that the principle of mutuality is applicable to the income determined in the rectification order passed. The CIT(A) observed that to the income of Rs. 19,70,050/- which was brought to tax after allowing direct and indirect/common expenses as directed by the ITAT, the principle of mutuality would not apply since it has direct nexus to the receipts from the individuals who were not members of the assessee club. In view of the above, the CIT(A) confirmed the rectification order passed u/s. 154 of the Act. 4.....
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....thdrawing the deduction towards 50% of receipts as exempt at Rs. 13,75,041/- and determined the income at Rs. 19,70,050/- instead of Rs. 5,95,010/-. 7.2 Now the contention of the Ld. AR is that deduction was granted to the assessee in terms of ITAT order in ITA No. 285/Coch/2003 dated 05/03/2004 wherein it was held as follows: "7(2) As far as the apportionment is concerned, we direct the Assessing Officer to treat 50% as taxable and the balance 50% as exempt. 7(6) As far as the assessment years 1997-98 and 1998-99 are concerned, the assessing officer may bring to tax the receipts from non-members and TMBT's on the basis of the separate accounting made by the assesseeclub. This is subject to verification to be made by the assessing off....