2019 (4) TMI 1240

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 1961 ignoring the detailed reasoning given by the AO? (b) Whether on the facts and circumstances of the case and in Law, the Tribunal was right in ignoring the fact that the sports activities and other recreation amenities are mainly for members and hence assessee is a mutual concern and not a charitable institution? (c) Whether on the facts and circumstances of the case and in Law, the Tribunal was right in holding that the assessee club is not covered by the principle of mutuality thereby violating provisions of Section 13 which disentitles the trust from claiming exemption under Section 11 of the I.T. Act, 1961? (d) Whether on the facts and circumstances of the case and in Law, the Tribunal was right in ignori....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hence assessee is a mutual concern and not a charitable institution? (c) Whether on the facts and circumstances of the case and in law, the ITAT was right in holding that the assessee club is not covered by the principle of mutuality thereby violating provisions of Section 13 which disentitles the trust from claiming exemption under Section 11? (d) Whether on the facts and circumstances of the case and in law, the ITAT was right in ignoring the ratio involved in the case of CIT Vs. Bankipur Club Ltd 226 ITR 97 (SC) wherein the Supreme Court has discussed the principle of mutuality in respect of income from sports activity and the taxability of income received from non members which is squarely applicable to this case? ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng an Olympic size swimming pool which was open to the general public on an annual membership basis without restriction as to caste, creed, religion or profession. The order of the Commissioner (Appeals) has been confirmed in Appeal by the Tribunal relying upon its decision dated 18 September 2008 and 29 July 2009 in respect of the Assessee. 3. This Court had the occasion to consider similar issues in a Judgment delivered in the case of Director of Income Tax (Exemption) Vs. The Chembur Gymkhana (Income Tax Appeal No.5568 of 2010) decided on 13 February 2012. This Court, following the law laid down by the Supreme Court, has held that the fact that the membership of the club is open to a section of the community would not detract fr....