TaxTMI 
TaxTMI 
2016 (1) TMI 1414
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....under consideration was completed by the AO u/s 143(3) of the Act on 19.11.2012. The Ld CIT, on examination of record, noticed the assessee's claim for deduction of Rs. 9,98,215/- towards the payment made to Mumbai Cricket Association was allowed by the assessing officer. The above said payment consisted of Entrance fee of Rs. 9,92,700/- and charges for recreation centre of Rs. 5,515/-. The Ld CIT noticed that the assessee has explained that the above said payment was made in the name of its representative in order to utilise the facilities of the club for meeting and entertaining business associates. The Ld CIT noticed that the AO has accepted the above said explanation of the assessee without examining the details such as the nature of me....
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....aipur Trib), wherein it was held that the enquiry made by the AO and the reply filed by the assessee cannot be considered to be a case of lack of enquiry. He further submitted that the view taken by Ld CIT is mere a case of change of opinion, which would not give license to initiate revision proceedings u/s 263 of the Act. 5. On merits, the Ld A.R submitted that the club membership fee is an admissible deduction as held by the Hon'ble jurisdictional Bombay High Court in the case of OTIS Elevator Co. (India) Ltd (1992)(195 ITR 682). He submitted that the membership fee was paid for a representative of the assessee, who could bring business for the assessee. Hence the same is allowable as deduction. Accordingly he submitted that the view t....
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....or and examine the record of any proceedings under the Act and, if he considers that any order passed therein, by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the Revenue, to pass an order upon hearing the assessee and after an enquiry as is necessary, enhancing or modifying the assessment or cancelling the assessment and directing a fresh assessment. The key words that are used by section 263 are that the order must be considered by the Commissioner to be "erroneous in so far as it is prejudicial to the interests of the Revenue". This provision has been interpreted by the Supreme Court in several judgments to which it is now necessary to turn. In Malabar Industrial Co. Ltd. v. CIT [2000] 243 ITR 83,....
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....The principle which has been laid down in Malabar Industrial Co. Ltd. [2000] 243 ITR 83 (SC) has been followed and explained in a subsequent judgment of the Supreme Court in CIT v. Max India Ltd. [2007] 295 ITR 282." 8. Based on the legal principles enunciated by the Hon'ble Courts, if we examine the facts available in the present case, we notice that the assessee's explanation that the club membership fee was paid for a representative of the assessee was accepted by the AO on the face of it. The documents furnished along with the reply letter furnished by the assessee clearly show that the membership fee was paid for Mrs. Lata Vasvani. There should not be any dispute that the club membership fee was allowed u/s 37(1) of the Act, where i....