M/S CHENNAI CORPORATE CLUB (P) LTD,CHENNAI vs. ACIT COMPANY CIRCLE 1 (3), CHENNAI

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ITA 720/CHNY/2018Status: DisposedITAT Chennai21 April 2021AY 2010-113 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue back to the AO, awaiting the decision of the High Court on similar appeals for earlier assessment years. The AO is to apply the High Court's decision once it is rendered.

What were the facts?

The assessee received non-refundable life membership fees and treated them as capital receipts. The Assessing Officer (AO) considered these as revenue receipts and taxed them. The CIT(A) dismissed the assessee's appeal.

What were the issues?

Whether non-refundable life membership fees are capital or revenue receipts, pending High Court decision.

Which sections of the Income-tax Act were involved?

Section 158A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

Before: SHRI V DURGA RAO & SHRI S. JAYARAMAN

Hearing: 09.03.2021Pronounced: 21.04.2021

M/s. Chennai Corporate Club (P) Vs. The Asst. Commissioner of Ltd., Income Tax, No.3, City Centre Plaza, Company Circle-1(3), IV Floor, Anna Salai, Chennai. Chennai-600 002. [PAN: AACCC 3395H] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : Mrs. Vardini Karthik, Advocate ��यथ� क� ओर से /Respondent by : Mrs. R. Anita, JCIT सुनवाई क� तारीख/Date of Hearing : 09.03.2021 घोषणा क� तारीख /Date of Pronouncement : 21.04.2021 आदेश / O R D E R PER SHRI S. JAYARAMAN, ACCOUNTANT MEMBER:

The assessee filed this appeal against the order of the Commissioner of Income Tax (Appeals)-3, Chennai, in 14/A-1 dated 29.12.2017 for the assessment year 2010-11.

2.

M/s. Chennai Corporate Club (P) Ltd., the assessee, received non- refundable life membership fee from its members and treated this amount as capital receipts and credited to the corpus. While making the 2 -: assessment for A.Y 2010-11, the A.O considered it to be revenue receipts and taxed the same. Aggrieved, the assessee filed appeal before the CIT(A) and the Ld. CIT(A) dismissed the appeal. Aggrieved against that order, the assessee filed this appeal.

3.

The case was heard through video conferencing. The Ld. A.R submitted that the similar issue was there for the assessment years 2001-02 to 2005-06 in which this Tribunal had confirmed the view taken by the lower authorities. The assessee had moved an appeal before the Jurisdictional High Court. Hon’ble Jurisdictional High Court had admitted such appeal and the matter is pending disposal. Accordingly, a declaration under Section 158A of the Act was filed since the issue involved was similar and one under consideration by the Hon’ble jurisdictional High Court. The Ld. A.R placed reliance on this Tribunal decisions in & 332/Mds/2012 dated 10.10.2012 for A.Ys 2006-07 & 2008-09 and in ITA No. 197/Mds/2012 dated 26.09.2013 for A.Y 2007-08 where, on similar circumstances, the matter was restored back to the AO.

4.

Per contra, the Ld. DR did not raise any serious objection on the matter being remitted back to the A.O.

3 -: 5. We have perused the orders and heard the contentions. Following the orders of this Tribunal in & 332/Mds/2012 dated 10.10.2012 for A.Ys 2006-07 & 2008-09 and in ITA No. 197/Mds/2012 dated 26.09.2013 for A.Y 2007-08 in the assessee’s case, we restore this issue back to the AO for awaiting the decision of Hon’ble Jurisdictional High Court in assessee’s appeals for the A.Ys 2001-02 to 2005-06 and thereafter apply the law laid down by the Hon’ble Jurisdictional High Court in this regard.

6.

In the result, the appeal filed by the assessee is allowed for statistical purpose.

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