2025 (8) TMI 972

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....13 and 2014-15 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 25.10.2017 and 29.11.2016 by the Assessing Officer, ITO (Exemptions), Ward-1(3), New Delhi (hereinafter referred to as 'ld. AO'). Both the appeals have identical issues and hence they are taken up and disposed of by this common order for the sake of convenience. 2. The only identical issue to be decided in these appeals is as to whether the one time life membership fee received by the assessee from its members could be construed as revenue receipt in the facts and circumstances of the instant case. The other grounds raised by the assessee challenging the validity of assessments were not argued and h....

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....Time Registration Fee (Life Membership)" from the qualified Architects in terms of Council of Architecture Rules, 1973 which is framed by Ministry of Human Resource Development (MHRD) of Government of India and under the said authority from MHRD of Government of India vide Gazette Notification No. 36 dated 26.9.1998 (Rule No. 29 to 30 of Architecture Rule, 1973) followed by Resolution passed in the 65th Meeting. The assessee passed a resolution in the 65th Meeting of the Executive Council dated 10.03.1999 wherein it was decided that one-time payment being received by the Council towards "Renewal Fee" from the Architects amounting to Rs.2000/- be capitalized and not to be spent and interest arising on this amount would be taken as income of ....

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....apital receipt given by the assessee. This proceedings ultimately culminated in framing of reassessment order u/s 147/ 143(3) of the Act on 25.10.2017 for Assessment Year 2012-13, determining the income of the assessee at Rs.91,42,842/- as under:- Gross receipt as per income and expenditure account 3,27,89,538/- Add: one time membership fee 1,56,45,000   4,84,34,538 85% of the sum 4,11,69,357 Less application of income as per income and expenditure 3,20,16,515 Balance 91,42,842 7. This balance of 91,42,842/- was treated as shortfall of application of income for charitable purposes and assessed to tax. The assessee preferred an appeal before the ld CIT(A) and could not succeed. It was submitted tha....

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....Exchange Association Vs. CIT reported in 41 ITR 495 (Del) c CIT Vs. United Club reported 161 ITR 853(Pat) 8. In all these aforesaid cases, the entrance fee/ one-time membership fee received from the new members were treated as revenue receipt. The ld DR also placed reliance on the decision of Hon'ble Jurisdictional High Court in the case of CIT vs Divine Light Mission reported in 278 ITR 659 (Del), wherein it was held that voluntary donation received by the trust was treated as revenue receipt. The ld AR placed reliance on the decision of the Hon'ble Bombay High Court in the case of CIT Vs. W.I.A.A. Club Limited reported in 136 ITR 569 (Bom), wherein the life time membership fee received by the club was treated as capital receip....