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 367,154 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

Dehradun Club Ltd, Dehradun vs. DCIT, Circle-1(1)(1), Dehradun

In the result, the appeal of the assessee is allowed

ITA 4753/DEL/2018[2006-07]Status: DisposedITAT Delhi07 Feb 2019AY 2006-07

Bench: Sh. N. S. Sainiita No. 4753/Del/2018 : Asstt. Year : 2006-07 Dehradun Club Ltd., Vs Dcit, 15, New Survey Road, Circle-1(1)(1), Dehradun, Uttarakhand Dehradun (Appellant) (Respondent) Pan No. Aaacd8246L Assessee By : Sh. V. Raja Kumar, Adv. Revenue By : Sh. S. L. Anuragi, Sr. Dr Date Of Hearing: 06.02.2019 Date Of Pronouncement:07.02.2019 Order This Is An Appeal Filed By The Assessee Against The Order Of Cit(A), Dehradun Dated 17.04.2018. 2. The Sole Issue Involved In This Appeal Is That The Cit(A) Erred In Confirming The Action Of The Ao Levying Penalty Of Rs.4,05,000/- U/S 271(1)(C) Of The Income Tax Act, 1961. 3. The Brief Facts Of The Case Are That The Assessee Is A Mutual Benefit Club Registered As A Company Limited By Guarantee U/S 25 Of The Companies Act, 1956. The Assessee Filed Return Of Income Declaring Nil Income. Thereafter, The Assessing Officer Reopened The Assessment By Issue Of Notice U/S 148 Of The Act & In The Assessment Framed Thereafter U/S 147 R.W.S. 143(3) Of The Act Made Addition To The Income Of The Assessee Of Rs.9,69,937/- Under The Head Interest Income On Fdr & Rs.2,28,000/- Under The Head Messing Commission. 2 Dehradun Club Ltd. 4. Thereafter, The Assessing Officer Issued Notice U/S 271(1)(C) Of The Act & Levied Penalty U/S 271(1)(C) Of The Act For Furnishing Inaccurate Particulars Of Income Of Rs.4,03,225/-.

For Appellant: Sh. V. Raja Kumar, AdvFor Respondent: Sh. S. L. Anuragi, Sr. DR
Section 147Section 148Section 14ASection 25Section 271(1)(c)

…x, even the annual value of the club house, as contemplated in section 22 of the Act, would be outside the purview of the levy of income-tax.” 9. The Revenue swanged into action only after the decision of Hon’ble Apex Court in case of Bangalore Club vs. CIT - 350 ITR 509 (SC) by way of reopening the assessment u/s 148 of the Act. 10. It is the case of the assessee that at the time of filing the return consequent upon the issue of notice u/s 148 of the Act, he was not aware of the decision rendered by Hon’ble Apex Court in Bangalore Club (supra). When the assessee has accepted the quantum, paid the taxes as well a…

M/S. Simbhaoli Sugars Limited, New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee are allowed

ITA 5572/DEL/2014[2006-07]Status: DisposedITAT Delhi14 Dec 2018AY 2006-07

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

ACIT, New Delhi vs. M/S. Simbhaoli Sugars, New Delhi

In the result, the appeals of the assessee are allowed

ITA 3001/DEL/2014[2006-07]Status: DisposedITAT Delhi14 Dec 2018AY 2006-07

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

M/S. U.P. Distillery Association, New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee are allowed

ITA 3211/DEL/2013[2006-07]Status: DisposedITAT Delhi14 Dec 2018AY 2006-07

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

M/S. U.P. Distillery Association, New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee are allowed

ITA 3210/DEL/2013[2003-04]Status: DisposedITAT Delhi14 Dec 2018AY 2003-04

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

M/S. U.P. Distillery Association, New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee are allowed

ITA 3209/DEL/2013[2004-05]Status: DisposedITAT Delhi14 Dec 2018AY 2004-05

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

M/S. U.P. Distillery Association, New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee are allowed

ITA 3208/DEL/2013[2005-06]Status: DisposedITAT Delhi14 Dec 2018AY 2005-06

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

DCIT, New Delhi vs. M/S. Svp Industries Ltd., Muzaffarnagar

In the result, the appeals of the assessee are allowed

ITA 1657/DEL/2013[2005-06]Status: DisposedITAT Delhi14 Dec 2018AY 2005-06

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

DCIT, New Delhi vs. M/S. Svp Industries Ltd., Muzaffarnagar

In the result, the appeals of the assessee are allowed

ITA 1656/DEL/2013[2004-05]Status: DisposedITAT Delhi14 Dec 2018AY 2004-05

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

DCIT, New Delhi vs. M/S. Svp Industries Ltd., Muzaffarnagar

In the result, the appeals of the assessee are allowed

ITA 1655/DEL/2013[2003-04]Status: DisposedITAT Delhi14 Dec 2018AY 2003-04

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

DCIT, New Delhi vs. M/S. Svp Industries Ltd., Muzaffarnagar

In the result, the appeals of the assessee are allowed

ITA 1654/DEL/2013[2002-03]Status: DisposedITAT Delhi14 Dec 2018AY 2002-03

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

DCIT, New Delhi vs. M/S. Dcm Shriram Industries Ltd., New Delhi

In the result, the appeals of the assessee are allowed

ITA 1652/DEL/2013[2004-05]Status: DisposedITAT Delhi14 Dec 2018AY 2004-05

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

DCIT, New Delhi vs. M/S. Dcm Shriram Industries Ltd., New Delhi

In the result, the appeals of the assessee are allowed

ITA 1651/DEL/2013[2003-04]Status: DisposedITAT Delhi14 Dec 2018AY 2003-04

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

DCIT, New Delhi vs. M/S. Dcm Shriram Industries Ltd., New Delhi

In the result, the appeals of the assessee are allowed

ITA 1650/DEL/2013[2002-03]Status: DisposedITAT Delhi14 Dec 2018AY 2002-03

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

DCIT, New Delhi vs. M/S. Dcm Shriram Industries Ltd., New Delhi

In the result, the appeals of the assessee are allowed

ITA 1649/DEL/2013[2001-02]Status: DisposedITAT Delhi14 Dec 2018AY 2001-02

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

U.P. Distillers Association Phd House, New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee are allowed

ITA 9/DEL/2012[2001-02]Status: DisposedITAT Delhi14 Dec 2018AY 2001-02

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

M/S. Superior Industries Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee are allowed

ITA 722/DEL/2012[2003-04]Status: DisposedITAT Delhi14 Dec 2018AY 2003-04

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

M/S. Superior Industries Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee are allowed

ITA 721/DEL/2012[2002-03]Status: DisposedITAT Delhi14 Dec 2018AY 2002-03

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

M/S. Superior Industries Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee are allowed

ITA 720/DEL/2012[2001-02]Status: DisposedITAT Delhi14 Dec 2018AY 2001-02

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…

Saraya Industries Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee are allowed

ITA 4692/DEL/2012[2006-07]Status: DisposedITAT Delhi14 Dec 2018AY 2006-07

Bench: Shri N.K. Billaiya & Ms. Suchitra Kambleassessment Year: 2003-04 Assessment Year: 2004-05 Assessment Year: 2005-06

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri S.S. Rana, CIT DR

…is w,e,f 1.10.2014 and not earlier. Against this judgment of the Hon'ble High Court, the Revenue had preferred a SLP before the Supreme Court but the same was dismissed. 229. The ld. DR strongly relied upon the decision in the case of Bangalore Club Vs. CIT 350 ITR 509 to assert that the claim of mutuality does not apply to the facts of the case in hand. In our considered opinion, this decision relied upon by the ld. DR would not apply to the facts of this case because in the case of Bangalore Club [supra] the source of interest income was from an related party to which mutuality of interest could not be attrib…