CIT v. Bankipur Club Ltd.

153 ITR 676High Court1985#10204 most cited

What is CIT v. Bankipur Club Ltd. authority for?

Income from services rendered to non-members by a club, even if it has a separate legal personality, is not covered by the principle of mutuality and is therefore taxable.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2018 to 2023.

Also referred to as

CIT v. Bankipur Club Ltd. · 153 ITR 676 · doctrine of mutuality · club income · service fee · taxable income

Judgments citing CIT v. Bankipur Club Ltd.

The Saturday Club Limited, Kolkata vs. DCIT, Circle - 8(2), Kolkata

In the result, the appeals of the Revenue for A

ITA 2491/KOL/2017[2012-13]Status: DisposedITAT Kolkata06 Nov 2023AY 2012-13

Bench: Shri Rajpal Yadav, Vice- & Dr. Manish Borad

Section 142(1)Section 143(2)

…order dated 20.06.2014 for the A,Y 2007-08, ld., CIT(A)-XXXII, Kolkata has, following the principle laid down in the decision of Supreme Court in the case of CIT Vs. Bankipur Club Ltd. 226 ITR 97 and of Calcutta High Court in the case of Darjeeling Club Ltd. 153 ITR 676, held that that the-amount was covered by principle of mutuality and deleted the addition. There is no chance in material facts of the case. Considering the reasoning given in the appellate order for A.Y.2007- 08, the addition is deleted. 5. Ground no.3 relates to addition of Rs. 40,88,325/- in respect of service fee from Reliance Industries Ltd,…

The Saturday Club Limited, Kolkata vs. DCIT, Cir-8(2), Kolkata

In the result, the appeals of the Revenue for A

ITA 2377/KOL/2016[2011-12]Status: DisposedITAT Kolkata06 Nov 2023AY 2011-12

Bench: Shri Rajpal Yadav, Vice- & Dr. Manish Borad

Section 142(1)Section 143(2)

…order dated 20.06.2014 for the A,Y 2007-08, ld., CIT(A)-XXXII, Kolkata has, following the principle laid down in the decision of Supreme Court in the case of CIT Vs. Bankipur Club Ltd. 226 ITR 97 and of Calcutta High Court in the case of Darjeeling Club Ltd. 153 ITR 676, held that that the-amount was covered by principle of mutuality and deleted the addition. There is no chance in material facts of the case. Considering the reasoning given in the appellate order for A.Y.2007- 08, the addition is deleted. 5. Ground no.3 relates to addition of Rs. 40,88,325/- in respect of service fee from Reliance Industries Ltd,…

DCIT, Circle-8, Kolkata vs. M/S. the Saturday Club Ltd, Kolkata

In the result, the appeals of the Revenue for A

ITA 1340/KOL/2012[2008-2009]Status: DisposedITAT Kolkata06 Nov 2023AY 2008-2009

Bench: Shri Rajpal Yadav, Vice- & Dr. Manish Borad

Section 142(1)Section 143(2)

…order dated 20.06.2014 for the A,Y 2007-08, ld., CIT(A)-XXXII, Kolkata has, following the principle laid down in the decision of Supreme Court in the case of CIT Vs. Bankipur Club Ltd. 226 ITR 97 and of Calcutta High Court in the case of Darjeeling Club Ltd. 153 ITR 676, held that that the-amount was covered by principle of mutuality and deleted the addition. There is no chance in material facts of the case. Considering the reasoning given in the appellate order for A.Y.2007- 08, the addition is deleted. 5. Ground no.3 relates to addition of Rs. 40,88,325/- in respect of service fee from Reliance Industries Ltd,…

The Saturday Club Limited vs. Principal Commissioner of Income Tax, Kolkata -3

The appeals are disposed of

ITA/127/2019HC Calcutta07 Jul 2023

Bench: HON'BLE JUSTICE I. P. MUKERJI,HON'BLE JUSTICE BISWAROOP CHOWDHURY

Section 22Section 23Section 260A

…ive submissions on a most interesting point of law based on the principle of “mutuality”. This principle was very simply yet authoritatively laid down in a division bench judgment of our court in Commissioner of Income Tax vs. Darjeeling Club Ltd. reported in 153 ITR 676. The Hon’ble Mr. Justice Suhas Chandra Sen delivering the judgment wrote – 4 “The principles laid down in the decided cases may be briefly stated. A group of persons can form a club to provide some facilities to themselves and any excess payment for these facilities may be retained for future use. In this process, no profit is made. When these…

The Saturday Club Limited vs. Principal Commissioner of Income Tax - 3

The appeals are disposed of

ITA/138/2019HC Calcutta07 Jul 2023

Bench: HON'BLE JUSTICE I. P. MUKERJI,HON'BLE JUSTICE BISWAROOP CHOWDHURY

Section 22Section 23Section 260A

…ive submissions on a most interesting point of law based on the principle of “mutuality”. This principle was very simply yet authoritatively laid down in a division bench judgment of our court in Commissioner of Income Tax vs. Darjeeling Club Ltd. reported in 153 ITR 676. The Hon’ble Mr. Justice Suhas Chandra Sen delivering the judgment wrote – 4 “The principles laid down in the decided cases may be briefly stated. A group of persons can form a club to provide some facilities to themselves and any excess payment for these facilities may be retained for future use. In this process, no profit is made. When these…

Principal Commissioner of Income Tax, Kolkata-2 vs. M/S. Expert Jewellers Pvt Ltd

The appeals are disposed of

ITAT/138/2019HC Calcutta26 Jul 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE BIVAS PATTANAYAK

Section 22Section 23Section 260A

…ive submissions on a most interesting point of law based on the principle of “mutuality”. This principle was very simply yet authoritatively laid down in a division bench judgment of our court in Commissioner of Income Tax vs. Darjeeling Club Ltd. reported in 153 ITR 676. The Hon’ble Mr. Justice Suhas Chandra Sen delivering the judgment wrote – 4 “The principles laid down in the decided cases may be briefly stated. A group of persons can form a club to provide some facilities to themselves and any excess payment for these facilities may be retained for future use. In this process, no profit is made. When these…

M/S. Calcutta Cricket & Football Club, Kolkata vs. ITO, Exemption, Ward 1(1). Kolkata, Kolkata

In the result, the appeal of the assessee is allowed

ITA 1105/KOL/2017[2012-13]Status: DisposedITAT Kolkata12 Dec 2018AY 2012-13

Bench: Shri A. T. Varkey, Jm & Shri M. Balaganesh, Am]

Section 11Section 12ASection 143(3)Section 25Section 263

…its members did not amount to sale of such preparations. It was held that the incorporated club only acted as an agent or trustee for its members for and on their behalf and recouped itself for the expenses incurred. (h) In CIT v Darjeeling Club Ltd., (1985) 153 ITR 676 (Cal), at page 686 of the Reports, it was held that a members' club did not carry on any business with its members and any surplus from provision of goods and services to the members was not business income. (i) In State of West Bengal Calcutta Club Ltd, (2008) 14 VST 499 (Cal.), at pages 507-08 of the Reports, it was held that collection by the…

DCIT, Cir-8(2), Kolkata vs. M/S the Saturday Club Ltd, Kolkata

ITA 837/KOL/2015[2010-2011]Status: HeardITAT Kolkata09 May 2018AY 2010-2011

Bench: Hon’Ble Shri Satbeer Singh Godara, Jm & Shri M.Balaganesh, Am ]

For Appellant: Ms. Sana Javed, CAFor Respondent: Shri Sallong Yaden, Addl. CIT
Section 143(3)

…A.Y.2007-08 while deleting the two additions of rental income and service fee received from corporate member M/s. Reliance Industries Ltd. The CIT(A) relies upon honourable jurisdictional decision in CIT vs Bankipur Club Ltd 226 ITR 97 and Darjeeling Club Ltd 153 ITR 676 in holding the impugned sums to be covered under mutual principle. It emerges from perusal of the case file in the former assessment year that CIT(A)’s order in the said preceding assessment year 2007-08 follows identical finding in A.Y.2004-05 and 2008-09. The Revenue’s appeal ITA No.748/Kol/2014 for A.Y.2007-08 was also fixed along with the ins…

Kalaimaghal Sabha, Chennai vs. ITO, Chennai

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

ITA 1404/CHNY/2017[2013-14]Status: DisposedITAT Chennai08 Jan 2018AY 2013-14

Bench: Shri Abraham P.George & Shri George Mathan

For Respondent: Mr.N.Madhavan, ACIT

…ors of the surplus must be contributors to the common fund. In other words, there must be complete identity between contributors and the participators. This principle is followed in CIT Vs Jam Merchants Association 106 ITR 542 (Guj) and CIT Vs Darjeeling Club 153 ITR 676 (Cal). In the case of Kalaimaghal Sabha the identity is proved. The participation in the surplus need not be immediate, that is it may not arise as soon as the surplus is discerned, but may arise much later, even on a winding up or on dissolution (Falconbridge Vs National Employee’s Mutual General Insurance Association (33 TC 103). In the case o…

Kalaimaghal Sabha, Chennai vs. ITO, Chennai

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

ITA 1403/CHNY/2017[2012-13]Status: DisposedITAT Chennai08 Jan 2018AY 2012-13

Bench: Shri Abraham P.George & Shri George Mathan

For Respondent: Mr.N.Madhavan, ACIT

…ors of the surplus must be contributors to the common fund. In other words, there must be complete identity between contributors and the participators. This principle is followed in CIT Vs Jam Merchants Association 106 ITR 542 (Guj) and CIT Vs Darjeeling Club 153 ITR 676 (Cal). In the case of Kalaimaghal Sabha the identity is proved. The participation in the surplus need not be immediate, that is it may not arise as soon as the surplus is discerned, but may arise much later, even on a winding up or on dissolution (Falconbridge Vs National Employee’s Mutual General Insurance Association (33 TC 103). In the case o…

CIT v. Bankipur Club Ltd. (153 ITR 676) — Cited in 10 Judgments | BharatTax