2025 (6) TMI 416

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....C. A. Nos. 499 to 502 of 2011 - -<br>Income Tax<br>Hon&#39;ble Mr. K.R. Shriram, Chief Justice And Hon&#39;ble Mr. Justice Sunder Mohan For the Appellant: : Mrs. Hemamuralikrishnan assisted by Mr. C. Subramanian For the Respondent : Mr. Avinash Krishnan Ravi Jr. Standing Counsel COMMON JUDGMENT HON&#39;BLE CHIEF JUSTICE On 31.10.2011, the following substantial question of law was fr....

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....eived was Rs. 15,50,000/-; for the assessment year 2004-2005, the amount received was Rs. 2,95,000/- and for the assessment year 2005-2006, the amount received was Rs. 29,97,275/-. These amounts were non-refundable to the members even after termination of life period of the members. 4. It is the case of assessee that the amounts received being one time payment to get membership into the club ar....

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....unning a private club. It offers various services. To avail of the services upon payment of regular monthly subscription, a person has to be first admitted as a member of the club. To be admitted as a member of the club, the applicant has to pay one time entrance fee. Once the entrance fee is paid by a new member, which amount admittedly is non-refundable and non-transferable at any stage, the adm....

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....d, relied upon the judgments of the Patna High Court in CIT v. Beldih Club [1986] 161 ITR 861 (Patna) and CIT v. United Club [1986] 161 ITR 853 (Patna) to confirm the opinion of the Assessing Officer and the CIT(A). In the case of United Club (supra), assessee&#39;s case was that the income of the club is totally exempted from income tax on the principle of mutuality. Similar was the case in Beldi....