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

Income Tax Officerv(Exemption) Ward 2, Pune vs. Credia Pune Metro, Pune

ITA 655/PUN/2020[2016-17]Status: DisposedITAT Pune30 Jun 2022AY 2016-17
For Appellant: Shri Suhas P. BoraFor Respondent: Shri S.P. Walimbe
Section 11Section 12ASection 143(3)Section 2(15)

…to the extent of “mutuality” benefit only in the CIT(A)’s order. The Revenue’s endeavour in both of its cross appeals is that the assessee nowhere fulfil the three monetary conditions of being a “mutual” organization in light of Bangalore Club Vs. CIT (2013) 350 ITR 209 (SC). 4. We have given our thoughtful consideration to the foregoing rival contentions. We note during the course of hearing the issue of assessee’s entitlement for section 11 exemption under the provisions of the Act is indeed a recurring one all along, This tribunal’s co-ordinate bench order dated 03-09- 2020 in ITA No. 2338 and 2339/PUN/2016…

Income Tax Officerv(Exemption) Ward 2, Pune vs. Credia Metro Pune, Pune

ITA 654/PUN/2020[2015-16]Status: DisposedITAT Pune30 Jun 2022AY 2015-16
For Appellant: Shri Suhas P. BoraFor Respondent: Shri S.P. Walimbe
Section 11Section 12ASection 143(3)Section 2(15)

…to the extent of “mutuality” benefit only in the CIT(A)’s order. The Revenue’s endeavour in both of its cross appeals is that the assessee nowhere fulfil the three monetary conditions of being a “mutual” organization in light of Bangalore Club Vs. CIT (2013) 350 ITR 209 (SC). 4. We have given our thoughtful consideration to the foregoing rival contentions. We note during the course of hearing the issue of assessee’s entitlement for section 11 exemption under the provisions of the Act is indeed a recurring one all along, This tribunal’s co-ordinate bench order dated 03-09- 2020 in ITA No. 2338 and 2339/PUN/2016…

Credai - Pune Metro, Pune vs. Deputy Commissioner of Income-Tax, Exemption Circle, Pune

ITA 474/PUN/2020[2016-17]Status: DisposedITAT Pune30 Jun 2022AY 2016-17
For Appellant: Shri Suhas P. BoraFor Respondent: Shri S.P. Walimbe
Section 11Section 12ASection 143(3)Section 2(15)

…to the extent of “mutuality” benefit only in the CIT(A)’s order. The Revenue’s endeavour in both of its cross appeals is that the assessee nowhere fulfil the three monetary conditions of being a “mutual” organization in light of Bangalore Club Vs. CIT (2013) 350 ITR 209 (SC). 4. We have given our thoughtful consideration to the foregoing rival contentions. We note during the course of hearing the issue of assessee’s entitlement for section 11 exemption under the provisions of the Act is indeed a recurring one all along, This tribunal’s co-ordinate bench order dated 03-09- 2020 in ITA No. 2338 and 2339/PUN/2016…

Credai-Pune Metro, Pune vs. Income-Tax Officer, Exemption, Pune

ITA 473/PUN/2020[2015-16]Status: DisposedITAT Pune30 Jun 2022AY 2015-16
For Appellant: Shri Suhas P. BoraFor Respondent: Shri S.P. Walimbe
Section 11Section 12ASection 143(3)Section 2(15)

…to the extent of “mutuality” benefit only in the CIT(A)’s order. The Revenue’s endeavour in both of its cross appeals is that the assessee nowhere fulfil the three monetary conditions of being a “mutual” organization in light of Bangalore Club Vs. CIT (2013) 350 ITR 209 (SC). 4. We have given our thoughtful consideration to the foregoing rival contentions. We note during the course of hearing the issue of assessee’s entitlement for section 11 exemption under the provisions of the Act is indeed a recurring one all along, This tribunal’s co-ordinate bench order dated 03-09- 2020 in ITA No. 2338 and 2339/PUN/2016…

The Fateh Maidan Club(AOP), Hyderabad vs. DCIT, Circle -5 (1), Hyderabad

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 99/HYD/2022[2014-15]Status: DisposedITAT Hyderabad30 Jun 2022AY 2014-15

Bench: Shri R. K. Panda

For Appellant: Sri S. Rama Rao, AdvocateFor Respondent: Sri Waseem Ur Rehman,DR
Section 142(1)Section 144Section 147Section 148

…e assessee has received interest income on fixed deposits from banks to the extent of Rs. 48,14,979/-. The AD brought the same to tax by relying on the ratio of the Hon'ble Supreme Court in the case of M/s. Bangalore Club vs. Commissioner of Income Tax & Anr. 350 ITR 509 SC (2013) and held that the same is not covered by the principle of mutuality. The appellant is aggrieved and is in appeal. Page 2 of 15 ITA Nos 98 to 101 of 2022 The Fateh Maidan Club 5.3.1 During the course of appellate proceedings, the AR filed written submissions and relied on various case laws and also the decision of the learned CIT(A)4,…

DCIT, Circle -5 (1), Hyderabad vs. The Fateh Maidan Club, Hyderabad

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 98/HYD/2022[2012-13]Status: DisposedITAT Hyderabad30 Jun 2022AY 2012-13

Bench: Shri R. K. Panda

For Appellant: Sri S. Rama Rao, AdvocateFor Respondent: Sri Waseem Ur Rehman,DR
Section 142(1)Section 144Section 147Section 148

…e assessee has received interest income on fixed deposits from banks to the extent of Rs. 48,14,979/-. The AD brought the same to tax by relying on the ratio of the Hon'ble Supreme Court in the case of M/s. Bangalore Club vs. Commissioner of Income Tax & Anr. 350 ITR 509 SC (2013) and held that the same is not covered by the principle of mutuality. The appellant is aggrieved and is in appeal. Page 2 of 15 ITA Nos 98 to 101 of 2022 The Fateh Maidan Club 5.3.1 During the course of appellate proceedings, the AR filed written submissions and relied on various case laws and also the decision of the learned CIT(A)4,…

The Fateh Maidan Club(AOP), Hyderabad vs. DCIT, Circle -5 (1), Hyderabad

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 101/HYD/2022[2016-17]Status: DisposedITAT Hyderabad30 Jun 2022AY 2016-17

Bench: Shri R. K. Panda

For Appellant: Sri S. Rama Rao, AdvocateFor Respondent: Sri Waseem Ur Rehman,DR
Section 142(1)Section 144Section 147Section 148

…e assessee has received interest income on fixed deposits from banks to the extent of Rs. 48,14,979/-. The AD brought the same to tax by relying on the ratio of the Hon'ble Supreme Court in the case of M/s. Bangalore Club vs. Commissioner of Income Tax & Anr. 350 ITR 509 SC (2013) and held that the same is not covered by the principle of mutuality. The appellant is aggrieved and is in appeal. Page 2 of 15 ITA Nos 98 to 101 of 2022 The Fateh Maidan Club 5.3.1 During the course of appellate proceedings, the AR filed written submissions and relied on various case laws and also the decision of the learned CIT(A)4,…

The Fateh Maidan Club(AOP), Hyderabad vs. DCIT, Circle -5 (1), Hyderabad

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 100/HYD/2022[2015-16]Status: DisposedITAT Hyderabad30 Jun 2022AY 2015-16

Bench: Shri R. K. Panda

For Appellant: Sri S. Rama Rao, AdvocateFor Respondent: Sri Waseem Ur Rehman,DR
Section 142(1)Section 144Section 147Section 148

…e assessee has received interest income on fixed deposits from banks to the extent of Rs. 48,14,979/-. The AD brought the same to tax by relying on the ratio of the Hon'ble Supreme Court in the case of M/s. Bangalore Club vs. Commissioner of Income Tax & Anr. 350 ITR 509 SC (2013) and held that the same is not covered by the principle of mutuality. The appellant is aggrieved and is in appeal. Page 2 of 15 ITA Nos 98 to 101 of 2022 The Fateh Maidan Club 5.3.1 During the course of appellate proceedings, the AR filed written submissions and relied on various case laws and also the decision of the learned CIT(A)4,…

DCIT, Circle 1(1) Exemption, New Delhi vs. India Habitate Centre, New Delhi

In the result, Revenue’s appeal is dismissed

ITA 5740/DEL/2019[2016-17]Status: DisposedITAT Delhi17 Jun 2022AY 2016-17

Bench: Shri Shamim Yahya & Ms. Astha Chandra[Assessment Year: 2016-17]

Section 11Section 12ASection 143(3)Section 2Section 2(15)Section 80G(5)(vi)

…61. 2. On the basis of facts and circumstances of the case and in law, the Ld. CIT(A) has erred in holding that the assessee society is covered under principle of mutuality in view of the judgement of Hon’ble Supreme Court in the case of Bangalore Club vs CIT 350 ITR 509 (SC).” 3. Brief facts of the case are that return of income was filed on 02.12.2016 disclosing Nil income. In the assessment order, the Assessing Officer noted that the society is registered under section 12A vide order dated 13.01.1989 and is also approved for the purpose of section 80G(5)(vi) vide order dated 19.07.2011. That as per the Memor…

Sun Divine Co. Op. Housing Society Ltd., Ahmedabad vs. ITO, Ward-4(2)(5), Ahmedabad

In the result, the appeal preferred by the assessee is allowed

ITA 619/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad15 Jun 2022AY 2015-16

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Shri Prakash D. Shah, ARFor Respondent: Shri R. R. Makwana, Sr. DR
Section 142(1)Section 143(2)Section 143(3)Section 154Section 250Section 56

…order in the case of Rajpat Club Ltd. vs. CIT, reported in (1995) 211 Sun Divine Co. Op. Housing Society Ltd. vs. ITO Asst.Year –2015-16 ITR 379 (Guj.) and the judgment passed by the Hon’ble Apex Court in the case of Bangalore Club vs. CIT, reported in (2013) 350 ITR 509 (SC) on similar issues. The Ld. CIT(A) was further of the opinion that this is an error which is rectifiable under Section 154 of the Act for A.Y. 2015-16 to bring the subject appellate order in terms with binding precedents of the Jurisdictional High Court. 4. The background of the assessee is this that the appellant is a Cooperative Housing So…

Poona Club Ltd, Pune vs. Deputy Commissioner of Income-Tax, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 892/PUN/2017[2008-09]Status: DisposedITAT Pune20 Apr 2022AY 2008-09

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…13 Poona Club Ltd. by accepting returned income in the assessment u/s 143(1) of the Act. Now, the Assessing Officer seeking to reopen the assessment on the ground that based on the decision of the Hon’ble Supreme Court in the case of Bangalore Club vs. CIT, 350 ITR 509 (SC), wherein, the Hon’ble Supreme Court held that the interest charges by the club is not exempt on the ground of mutuality and, therefore, sought to disallow the expenses claimed against the interest income from bank and other charges like receipts from venue charges from members’ guest, dinner receipts from members’ guest, receipts from cricke…

Poona Club Ltd, Pune vs. Deputy Commissioner of Income-Tax, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 891/PUN/2017[2007-08]Status: DisposedITAT Pune20 Apr 2022AY 2007-08

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…13 Poona Club Ltd. by accepting returned income in the assessment u/s 143(1) of the Act. Now, the Assessing Officer seeking to reopen the assessment on the ground that based on the decision of the Hon’ble Supreme Court in the case of Bangalore Club vs. CIT, 350 ITR 509 (SC), wherein, the Hon’ble Supreme Court held that the interest charges by the club is not exempt on the ground of mutuality and, therefore, sought to disallow the expenses claimed against the interest income from bank and other charges like receipts from venue charges from members’ guest, dinner receipts from members’ guest, receipts from cricke…

Poona Club Ltd, Pune vs. Deputy Commissioner of Income-Tax, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 890/PUN/2017[2006-07]Status: DisposedITAT Pune20 Apr 2022AY 2006-07

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…13 Poona Club Ltd. by accepting returned income in the assessment u/s 143(1) of the Act. Now, the Assessing Officer seeking to reopen the assessment on the ground that based on the decision of the Hon’ble Supreme Court in the case of Bangalore Club vs. CIT, 350 ITR 509 (SC), wherein, the Hon’ble Supreme Court held that the interest charges by the club is not exempt on the ground of mutuality and, therefore, sought to disallow the expenses claimed against the interest income from bank and other charges like receipts from venue charges from members’ guest, dinner receipts from members’ guest, receipts from cricke…

Assistant Commissioner of Income-Tax, Circle - 4, Pune vs. M/S. Poona Club Ltd, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 1939/PUN/2017[2013-14]Status: DisposedITAT Pune20 Apr 2022AY 2013-14

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…13 Poona Club Ltd. by accepting returned income in the assessment u/s 143(1) of the Act. Now, the Assessing Officer seeking to reopen the assessment on the ground that based on the decision of the Hon’ble Supreme Court in the case of Bangalore Club vs. CIT, 350 ITR 509 (SC), wherein, the Hon’ble Supreme Court held that the interest charges by the club is not exempt on the ground of mutuality and, therefore, sought to disallow the expenses claimed against the interest income from bank and other charges like receipts from venue charges from members’ guest, dinner receipts from members’ guest, receipts from cricke…

Assistant Commissioner of Income Tax, Pune vs. M/S. Poona Club Ltd., Pune

In the result, the appeal filed by the Revenue in ITA

ITA 1238/PUN/2017[2012-13]Status: DisposedITAT Pune20 Apr 2022AY 2012-13

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…13 Poona Club Ltd. by accepting returned income in the assessment u/s 143(1) of the Act. Now, the Assessing Officer seeking to reopen the assessment on the ground that based on the decision of the Hon’ble Supreme Court in the case of Bangalore Club vs. CIT, 350 ITR 509 (SC), wherein, the Hon’ble Supreme Court held that the interest charges by the club is not exempt on the ground of mutuality and, therefore, sought to disallow the expenses claimed against the interest income from bank and other charges like receipts from venue charges from members’ guest, dinner receipts from members’ guest, receipts from cricke…

Assistant Commissioner of Income Tax, Pune vs. M/S. Poona Club Ltd., Pune

In the result, the appeal filed by the Revenue in ITA

ITA 1237/PUN/2017[2011-12]Status: DisposedITAT Pune20 Apr 2022AY 2011-12

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…13 Poona Club Ltd. by accepting returned income in the assessment u/s 143(1) of the Act. Now, the Assessing Officer seeking to reopen the assessment on the ground that based on the decision of the Hon’ble Supreme Court in the case of Bangalore Club vs. CIT, 350 ITR 509 (SC), wherein, the Hon’ble Supreme Court held that the interest charges by the club is not exempt on the ground of mutuality and, therefore, sought to disallow the expenses claimed against the interest income from bank and other charges like receipts from venue charges from members’ guest, dinner receipts from members’ guest, receipts from cricke…

Assistant Commissioner of Income Tax, Pune vs. M/S. Poona Club Ltd., Pune

In the result, the appeal filed by the Revenue in ITA

ITA 1235/PUN/2017[2008-09]Status: DisposedITAT Pune20 Apr 2022AY 2008-09

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…13 Poona Club Ltd. by accepting returned income in the assessment u/s 143(1) of the Act. Now, the Assessing Officer seeking to reopen the assessment on the ground that based on the decision of the Hon’ble Supreme Court in the case of Bangalore Club vs. CIT, 350 ITR 509 (SC), wherein, the Hon’ble Supreme Court held that the interest charges by the club is not exempt on the ground of mutuality and, therefore, sought to disallow the expenses claimed against the interest income from bank and other charges like receipts from venue charges from members’ guest, dinner receipts from members’ guest, receipts from cricke…

Poona Club Ltd, Pune vs. Deputy Commissioner of Income-Tax, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 895/PUN/2017[2012-13]Status: DisposedITAT Pune20 Apr 2022AY 2012-13

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…13 Poona Club Ltd. by accepting returned income in the assessment u/s 143(1) of the Act. Now, the Assessing Officer seeking to reopen the assessment on the ground that based on the decision of the Hon’ble Supreme Court in the case of Bangalore Club vs. CIT, 350 ITR 509 (SC), wherein, the Hon’ble Supreme Court held that the interest charges by the club is not exempt on the ground of mutuality and, therefore, sought to disallow the expenses claimed against the interest income from bank and other charges like receipts from venue charges from members’ guest, dinner receipts from members’ guest, receipts from cricke…

Poona Club Ltd, Pune vs. Deputy Commissioner of Income-Tax, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 894/PUN/2017[2011-12]Status: DisposedITAT Pune20 Apr 2022AY 2011-12

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…13 Poona Club Ltd. by accepting returned income in the assessment u/s 143(1) of the Act. Now, the Assessing Officer seeking to reopen the assessment on the ground that based on the decision of the Hon’ble Supreme Court in the case of Bangalore Club vs. CIT, 350 ITR 509 (SC), wherein, the Hon’ble Supreme Court held that the interest charges by the club is not exempt on the ground of mutuality and, therefore, sought to disallow the expenses claimed against the interest income from bank and other charges like receipts from venue charges from members’ guest, dinner receipts from members’ guest, receipts from cricke…

Poona Club Ltd, Pune vs. Deputy Commissioner of Income-Tax, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 893/PUN/2017[2009-10]Status: DisposedITAT Pune20 Apr 2022AY 2009-10

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…13 Poona Club Ltd. by accepting returned income in the assessment u/s 143(1) of the Act. Now, the Assessing Officer seeking to reopen the assessment on the ground that based on the decision of the Hon’ble Supreme Court in the case of Bangalore Club vs. CIT, 350 ITR 509 (SC), wherein, the Hon’ble Supreme Court held that the interest charges by the club is not exempt on the ground of mutuality and, therefore, sought to disallow the expenses claimed against the interest income from bank and other charges like receipts from venue charges from members’ guest, dinner receipts from members’ guest, receipts from cricke…