Bombay Presidency Golf Club Ltd. v. ITO

DCIT (E) 2(1), Mumbai vs. Mumbai Railway Vikas Corpn Ltd, Mumbai

In the result, all the Four appeals filed by the revenue and four cross objections filed by the assessee are dismissed

Bench: Shri Rajesh Kumar & Shri Pavan Kumar Gadale

…ds of the government, pending their deployment towards specific railway project cannot qualify as ,an activity in nature of trade, commerce or business as held by the Honorable Mumbai Tribunal in the case of Bombay Presidency Golf Club Ltd. v/s. ITO - [(2016) 159 ITD 1050 (Mum - Trib] In which case it was clearly held that "...the investments made with banks is not an activity in the nature of trade, commerce or business but is income earned on application of moneys mandated under section ll(5)(iii). Thus, as per the provisions of section 11(5), the assessee is permitted to deposit in any account with a schedule…

DCIT (E) 2(1), Mumbai vs. Mumbai Railway Vikas Corpn Ltd, Mumbai

…ds of the government, pending their deployment towards specific railway project cannot qualify as ,an activity in nature of trade, commerce or business as held by the Honorable Mumbai Tribunal in the case of Bombay Presidency Golf Club Ltd. v/s. ITO - [(2016) 159 ITD 1050 (Mum - Trib] In which case it was clearly held that "...the investments made with banks is not an activity in the nature of trade, commerce or business but is income earned on application of moneys mandated under section 11(5)(iii). Thus, as per the provisions of section 11(5), the assessee is permitted to deposit in any account with a schedule…

DCIT (E) 2(1), Mumbai vs. Mumbai Railway Vikas Corpn Ltd, Mumbai

…ds of the government, pending their deployment towards specific railway project cannot qualify as ,an activity in nature of trade, commerce or business as held by the Honorable Mumbai Tribunal in the case of Bombay Presidency Golf Club Ltd. v/s. ITO - [(2016) 159 ITD 1050 (Mum - Trib] In which case it was clearly held that "...the investments made with banks is not an activity in the nature of trade, commerce or business but is income earned on application of moneys mandated under section ll(5)(iii). Thus, as per the provisions of section 11(5), the assessee is permitted to deposit in any account with a schedule…

DCIT (E) 2(1), Mumbai vs. Mumbai Railway Vikas Corpn Ltd, Mumbai

…ds of the government, pending their deployment towards specific railway project cannot qualify as ,an activity in nature of trade, commerce or business as held by the Honorable Mumbai Tribunal in the case of Bombay Presidency Golf Club Ltd. v/s. ITO - [(2016) 159 ITD 1050 (Mum - Trib] In which case it was clearly held that "...the investments made with banks is not an activity in the nature of trade, commerce or business but is income earned on application of moneys mandated under section ll(5)(iii). Thus, as per the provisions of section 11(5), the assessee is permitted to deposit in any account with a schedule…

All India Gems & Jewellery Trade Federation, Mumbai vs. ITO (E) 1(1), Mumbai

In the result, appeal of the assessee is allowed, as above

Bench: Shri G.S. Pannu & Shri Ram Lal Negi: A.Y : 2012-13 All India Gems & Jewellery Trade Vs. Ito (Exemption)-1(1), Federation Mumbai (Respondent) Plot No. A-56, 5Th Floor, P&S Corporate House, Road No. 1, Behind Tunga International, Midc, Andheri (E), Mumbai 400 093. Pan : Aafca3001P (Appellant)

…eferred to the decision of the Tribunal dated 11.01.2017 in assessee’s own case for Assessment Year 2011-12, but also relied upon the decision of the Mumbai Bench of the Tribunal in the case of Bombay Presidency Golf Club Ltd vs. ITO (Exemptions)-1(1), [2016] 159 ITD 1050 (Mumbai-Trib.) to point out that the act of depositing money in a scheduled bank was not an activity in the nature of trade, commerce or business so as to constitute a non- charitable activity and that such income was also eligible for being considered as a charitable activity. It has been canvassed that assessee is to 4 All India Gems & Jewelle…