THE COMMISSIONER OF INCOME TAX vs. KARNATAKA GOLF ASSOCIATION

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ITA/59/2010HC KarnatakaKAHC01011898201005 January 2016Bench: S.SUJATHA,N.K.PATIL4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed the appeal in part, remanding the matter back to the Assessing Officer. The Assessing Officer is to re-examine the exemptions claimed by the assessee with reference to Sections 11 and 13 of the Income Tax Act.

What were the facts?

The Revenue appealed against an ITAT order that confirmed the charitable nature of the assessee's activities, including golf, catering, and membership fees. The assessee is the Karnataka Golf Association.

What were the issues?

Whether the activities of the golf association are charitable and available to the general public, and if income from non-member activities is also exempt.

Which sections of the Income-tax Act were involved?

Section 11,Section 13,Section 260-A

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 5TH DAY OF JANUARY 2016

PRESENT

THE HON’BLE MR.JUSTICE N K PATIL

AND

THE HON’BLE MRS.JUSTICE S SUJATHA

ITA NO.59/2010

BETWEEN

1.

The Commissioner of Income-tax

C R Building

Queens Road

Bangalore

2.

The Deputy Director of Income-tax

Circle-17(1)

C R Building

Queens Road Bangalore

...Appellants

(By Sri K.V. Aravind, Advocate)

AND

Karnataka Golf Association No.1, Golf Avenue Kodihalli Opp. Airport Road Bangalore-560 017

…Respondent

(By Sri. K.R.Prasad, Advocate)

This Income-tax Appeal is filed under Section 260-A of Income-tax Act 1961, to set aside the order passed by the ITAT, Bangalore in ITA

2 No.418/Bang/2009 in C.O.No.23/Bang/2009 dated 21.08.2009 confirming the order of the Appellate Commissioner and confirm the order passed by the Deputy Director of Income-tax, Circle-17(1), Bangalore, in the interest of justice and equity.

This appeal coming on for Hearing this day, N.K. Patil. J., delivered the following:

JUDGMENT

This appeal is by the revenue questioning the correctness of the order dated 21.08.2009 passed by the Income Tax Appellate Tribunal

in ITA No.418/Bang/2009 in C.O.No.23/Bang/2009 confirming the order of Appellate Commissioner and confirm the order passed by the Deputy Director of Income Tax, Circle – 17(1), Bangalore raising the following substantial questions of law for our consideration: (1) Whether the Appellate Authorities were correct in holding that the activity of playing golf and other activities like catering income, membership fee, being promoted by the assessee to its members is a charitable activity and entitled to exemption from tax even though the assessee’s activities is not available to the general public?

3 (2) Whether the Appellate Authorities were correct in holding that the entire income of the assessee including such income earned from activities made available to non-members is also exempt from Income Tax?

2.

We have heard learned counsel appearing for the appellants and the learned counsel appearing for the respondent.

3.

Both the counsel appearing for the parties at the outset submit that the relief sought in this appeal is squarely covered by a Division Bench Judgment of this Court in ITA No.418/2008 disposed of on 01.12.2010 filed by the Commissioner of Income Tax and Another against Karnataka Golf Association (AOP). Therefore, they submit that following the said Judgment, the instant appeal may also be disposed off, directing the Assessing Officer to consider the entire matter as to whether the exemptions claimed by assessee could be allowed or not with reference to Sections 11 and 13 of the Income Tax Act?

4.

The submissions of the learned counsel are placed on record.

5.

The appeal filed by the appellants is allowed in part following the Judgment of the Division Bench of this Court dated 01.12.2010 passed in ITA No.418/2008, without answering the substantial questions of law and directing the Assessing Officer to consider the entire matter afresh by examining as to whether the exemptions claimed by assessee could be allowed or not with reference to Sections 11 and 13 of the Act. All contentions urged in this appeal are left open. Ordered accordingly.

Sd/-

JUDGE

Sd/-

JUDGE

brn

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