Bangalore Club v. CIT

350 ITR 509Supreme Court of India2013#351 most cited

What is Bangalore Club v. CIT authority for?

The Supreme Court affirmed the doctrine of mutuality, holding that contributions received from and returned to members for a common purpose do not constitute taxable profits. However, income from transactions with non-members or interest earned from investments in external entities (like cooperative banks) may break the mutuality chain and be taxable under Section 56, falling outside the scope of Section 80P deductions.

247

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2014 to 2026.

Also referred to as

Bangalore Club v. CIT · mutuality principle · doctrine of mutuality · Section 80P · Section 80P(2)(d) · Section 56 · cooperative society income · interest income taxability · income from other sources · mutual undertaking · members club · taxation of clubs

Also reported as

29 Taxmann.com 295 SCC 509212 Taxmann 566

Sections most often in play

Section 143(3)Section 80P(2)(a)(i)Section 56Section 80P(2)(d)Section 254Section 142(1)Section 80PSection 80P(1)
Read the full judgment

Issues it is cited on

mutuality principledoctrine of mutualitysection 11(4a)proviso to section 2(15)section 80p(1)section 80p(4)section 2(15)section 80p(2)(d)section 10(23c)section 80p(2)(a)section 80p(2)(a)(i)section 80p(2)

Judgments citing Bangalore Club v. CIT

D.C.I.T Cir - 8, Kolkata. vs. M/S the Saturday Club Ltd, Kolkata

In the result both the appeals of the revenue are allowed to the extent indicated

ITA 339/KOL/2013[2009-10]Status: HeardITAT Kolkata02 Dec 2016AY 2009-10

Bench: Hon’Ble Shri P.M.Jagtap, Am & Sri N.V.Vasudevan, Jm ] I.T.A Nos.1340/Kol/2012 & 339/Kol/2013 Assessment Years : 2008-09 & 2009-10 D.C.I.T., Circle-8, -Vs.- M/S. The Saturday Club Ltd. Kolkata Kolkata [Pan : Aabct1662R (Appellant) (Respondent) For The Appellant : Shri Vijayendra Kumar, Jcit For The Respondent : Shri J.P.Khaitan, Advocate & Shri P.Jhunjhunwala,Advocate Date Of Hearing : 24.11.2016. Date Of Pronouncement : 02.12.2016. Order Per N.V.Vasudevan, Jm

For Appellant: Shri Vijayendra Kumar, JCITFor Respondent: Shri J.P.Khaitan, Advocate & Shri P.Jhunjhunwala,Advocate
Section 143(3)

…this regard is essentially the result of judicial pronouncements, there being nothing explicitly provided in the statute in this regard. 5. The law in this regard has been recently laid down by the Hon’ble Supreme Court in the case of Bangalore Club v/s. CIT 350 ITR 509 (SC), where the question for determination before the Hon’ble Supreme Court was as to whether or not the interest earned by the assessee on the surplus funds invested in fixed deposits with the corporate member banks is exempt from levy of Income Tax, based on the doctrine of mutuality? The Hon’ble Supreme Court answered the aforesaid question in…

The Wodehouse Gymkhana Ltd, Mumbai vs. DCIT (OSD) 1(1), Mumbai

In the result, the appeal filed by the assessee may be treated as allowed for statistical purposes

ITA 1290/MUM/2014[2007-08]Status: DisposedITAT Mumbai02 Nov 2016AY 2007-08

Bench: Shri Amit Shukla & Shri Ashwani Tanejaassessment Year: 2007-08 Wodehouse Gymkhana Ltd. Dy Cit Range(Osd)-1(1) 182, Maharshi Karve Road, Aayakar Bhavan, बनाम/ Colaba, Vs. Mumbai-400021 Mumbai-40020 (Appellant) (Respondent ) P.A. No.Aaacf2119C Appellant By Shri Jeevraj P. Jain (Ar) Revenue By Shri Prakash R. Mane (Sr.Dr) सुनवाई क" तार"ख/Date Of Hearing: 02/11/2016 आदेश क" तार"ख /Date Of Order: 02/11/2016

Section 143(3)Section 14A

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ,G,मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “G”, MUMBAI "ी अ"मत शु"ला, "या"यक सद"य एवं "ी अ"वनी तनेजा, लेखा सद"य, के सम" Before Shri Amit Shukla, Judicial Member, and Shri Ashwani Taneja, Accountant Member Assessment Year: 2007-08 Wodehouse Gymkhana Ltd. Dy CIT Range(OSD)-1(1) 182, Maharshi Karve Road, Aayakar Bhavan, बनाम/ Colaba, Vs. Mumbai-400021 Mumbai-40020 (Appellant) (Respondent ) P.A. No.AAACF2119C Appellant by Shri Jeevraj P. Jain (AR) Revenue by Shri Prakash R. Mane (Sr.DR) सुनवाई क" तार"ख/Date of Hearing: 02/11/2016 आदेश क" तार"ख /Date of Order: 02/…

Sobha Suburbia Apartments Owners Welfare Association, Bangalore vs. ITO, Bangalore

In the result, the appeals filed by the assessee are allowed

ITA 627/BANG/2014[2008-09]Status: DisposedITAT Bangalore23 Sept 2016AY 2008-09

Bench: Shri Vijay Pal Rao & Shri S. Jayaraman

For Appellant: Shri B.S. Balachandran, AdvocateFor Respondent: Shri Vijay Kumar N, Addl.CIT (D.R)
Section 143(1)Section 148

…id that the reopening is based on change of opinion. He has further submitted that the principle of mutuality does not apply on the interest income on fixed deposit with banks as held by the Hon'ble Supreme Court in the case of Bangalore Club Vs. CIT & Anr. 350 ITR 509. He has relied upon the orders of the authorities below. 9. We have considered the rival submissions as well as the relevant material on record. As we have discussed the relevant facts in the foregoing paras that the interest income in question was received on the corpus amount deposited with the banks. It is not disputed by the Assessing Offic…

Sports & Cultural Club (Regd), Noida vs. JCIT, Noida

In the result, the appeals of the assessee are partly allowed

ITA 1897/DEL/2016[2006-07]Status: DisposedITAT Delhi23 Sept 2016AY 2006-07

Bench: Shri G.D. Agrawalbefore Shri G.D. Agrawal & And Before Shri Before Shri G.D. Agrawalg.D. Agrawal & And Shri Chandra Mohan Garg Shri Chandra Mohan Gargshri Chandra Mohan Garg Shri Chandra Mohan Garg

For Appellant: Shri Ved Jain, Shri Ashish Chadha and Shri Ashish Goel, CAsFor Respondent: Ms. Paramita Tripathy, CIT-DR
Section 12ASection 143(3)Section 147Section 251

…IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI BENCH ‘ DELHI DELHI BENCH ‘ BENCH ‘D’: NEW DELHI BENCH ‘ : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND AND BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND , JUDICIAL MEMBER SHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER SHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG , JUDICIAL MEMBER , JUDICIAL MEMBER ITA Nos.1897/Del/20…

M/S Calcutta Cricket & Football Club, Kolkata vs. ITO, Exemption-1, Kolkata

In the result, appeal by the Assessee is allowed

ITA 466/KOL/2016[2011-2012]Status: DisposedITAT Kolkata05 Aug 2016AY 2011-2012

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Dr.Arjun Lal Saini, Am] I.T.A No. 466/Kol/2016 Assessment Year : 2011-12 M/S. Calcutta Cricket & Football Club -Vs.- I.T.O., Exemption-I, Kolkata Kolkata [Pan : Aaccc 6337 P] (Respondent) (Appellant) For The Appellant : Shri J.P.Khaitan, Sr.Advocate & Shri Manoj Kataruka, Advocate For The Respondent : Shri G.Mallikarjuna, Cit(Dr) Date Of Hearing : 01.08.2016. Date Of Pronouncement : 05.08.2016. Order Per N.V.Vasudevan, Jm

For Appellant: Shri J.P.Khaitan, Sr.Advocate &For Respondent: Shri G.Mallikarjuna, CIT(DR)
Section 11Section 143(1)Section 143(3)Section 25Section 263

…further that the first proviso shall not apply if the aggregate value of the receipts from the activities referred to therein is ten lakh rupees or less in the previous year”. (it became Rs.25 lakhs w.e.f. 1-4-2012) 20. In the case of Bangalore Club v/s. CIT 350 ITR 509 (SC), the question for determination before the Hon’ble Supreme Court was as to whether or not the interest earned by the assessee on the surplus funds invested in fixed deposits with the corporate member banks is exempt from levy of Income Tax, based on the doctrine of mutuality? The Hon’ble Supreme Court answered the aforesaid question in favou…

ITO 3(1)(1), Mumbai vs. The Air Cargo Agents Associates of India, Mumbai

The appeal of the Revenue is dismissed

ITA 7472/MUM/2014[2011-12]Status: DisposedITAT Mumbai20 Jul 2016AY 2011-12

Bench: Shri Joginder Singh & Shri Rajesh Kumarassessment Year: 2011-12 Income Tax Act Offier-3(1)(1) M/S. The Air Cargo Agencies Aayakar Bhavan, M.K. Road Association Of India बनाम/ Mumbai 40002 28, Nariman Bhavan Vs. Nariman Point Mumbai 400021 (राज"व /Revenue) ("नधा"रती /Assessee) Pan. No. Aaact1460A

Section 10Section 25Section 44A

…Court in the case of the assessee for Assessment year 2007-08 vide order dated 31.03.2016 in the appeal filed by the Revenue under section 260A of the Act (ITA No. 2455 of 2013 affirmed the order of the Tribunal wherein the decision in Bangalore Club vs. CIT 350 ITR 509 (SC) was considered and decided the issue in favour of the assessee. Thus following the decision of the Tribunal and the 8 The Air Cargo Agencies Association of India principle of consistency and further respectfully following the order from Hon'ble jurisdictional High Court, we find no merit in the ground raised by the Revenue, therefore, the st…

Mantola Co-Operative Thrift & Credit Society Ltd vs. Commissioner of Income Tax

The appeal is disposed of

ITA/569/2013HC Delhi27 Aug 2014
Section 2(24)Section 201Section 80PSection 80P(2)Section 80P(2)(a)

…llant-assessee was a cooperative society and providing credit facilities to its members, clause (viia) to sub-section (24) to Section 2 would be applicable. Even otherwise on the principle of mutuality, the Supreme Court in Bangalore Club Vs. CIT, (2013) 350 ITR 509 has held that the interest earned on FDRs with banks would not be covered by the principle of mutuality as the transactions were not between the contributors and the beneficiary, but were between the assessee and a third person. 11. At this stage, learned counsel for the appellant-assessee has pointed out that the Commissioner of Income…