CIT v. Delhi Gymkhana Club Limited

339 ITR 525Reported decision2011#5513 most cited

What is CIT v. Delhi Gymkhana Club Limited authority for?

The doctrine of mutuality is applicable to interest earned on fixed deposits, provided the interest is used for the maintenance and welfare of members. However, some later judgments have dissented from this view, holding that such interest is taxable.

21

judgments rely on this decision, according to BharatTax’s citation analysis of 366,406 Indian tax judgments — from 2016 to 2022.

Also referred to as

CIT v. Delhi Gymkhana Club Limited · 339 ITR 525 · doctrine of mutuality · interest on fixed deposits · club income · exemption · Section 11 · charitable trust · welfare of members

Read the full judgment

Judgments citing CIT v. Delhi Gymkhana Club Limited

Dev Caste Ktoy Owners Association, Ahmedabad vs. The ITO, Ward-3(2)(6), Ahmedabad

In the result, the appeal filed by the assessee is partly allowed

ITA 200/AHD/2022[2017-18]Status: DisposedITAT Ahmedabad23 Dec 2022AY 2017-18

Bench: Ms. Suchitra Kamble

For Appellant: Shri Sanjay R Shah, A.RFor Respondent: Shri M. Anand Kumar, Sr. D.R
Section 57Section 80PSection 80P(2)(c)

…complex/residential premises. The Ld. A.R. relied upon the decision of Hon’ble Karnataka High Court in case of Canara Bank Golden Jubilee Staff Welfare Fund vs. DCIT 308 ITR 202, decision of Hon’ble Delhi High Court in case of CIT vs. Delhi Gymkhana Club Ltd. 339 ITR 525, decision of Hon’ble Bombay High Court in case of Sind Co- op. Hsg. Society vs. ITO 317 ITR 47, decision of Hon’ble Delhi High Court in case of CIT vs. Talangang Co-op. Housing Society Ltd. 339 ITR 518. Dev Castle Ktoy Owners Association vs. ITO Asst.Year–2017-18 The Ld. A.R. also relied upon the decision of Ahmedabad Tribunal in case of Manekbau…

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

…ple of mutuality ended the moment the club deposited the surplus with a bank with the sole aim of earning interest from deposits. While coming to this conclusion, the Hon'ble AP High Court has dissented from the ratio of CIT Vs Delhi Gymkhana Cub Ltd. [2011) {339 ITR 525] which was relied upon by the AR. Also, the Hon'ble Karnataka High Court in a latest decision in Page 3 of 15 ITA Nos 98 to 101 of 2022 The Fateh Maidan Club Brigada Plaza Unit Owners Association Vs. ITO, Ward 5(2)(3L Bangalore [129 taxmann.com 51] [25-2-2021] has categorically held that the doctrine of mutuality is certainly not applicable to…

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

…ple of mutuality ended the moment the club deposited the surplus with a bank with the sole aim of earning interest from deposits. While coming to this conclusion, the Hon'ble AP High Court has dissented from the ratio of CIT Vs Delhi Gymkhana Cub Ltd. [2011) {339 ITR 525] which was relied upon by the AR. Also, the Hon'ble Karnataka High Court in a latest decision in Page 3 of 15 ITA Nos 98 to 101 of 2022 The Fateh Maidan Club Brigada Plaza Unit Owners Association Vs. ITO, Ward 5(2)(3L Bangalore [129 taxmann.com 51] [25-2-2021] has categorically held that the doctrine of mutuality is certainly not applicable to…

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

…ple of mutuality ended the moment the club deposited the surplus with a bank with the sole aim of earning interest from deposits. While coming to this conclusion, the Hon'ble AP High Court has dissented from the ratio of CIT Vs Delhi Gymkhana Cub Ltd. [2011) {339 ITR 525] which was relied upon by the AR. Also, the Hon'ble Karnataka High Court in a latest decision in Page 3 of 15 ITA Nos 98 to 101 of 2022 The Fateh Maidan Club Brigada Plaza Unit Owners Association Vs. ITO, Ward 5(2)(3L Bangalore [129 taxmann.com 51] [25-2-2021] has categorically held that the doctrine of mutuality is certainly not applicable to…

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

…ple of mutuality ended the moment the club deposited the surplus with a bank with the sole aim of earning interest from deposits. While coming to this conclusion, the Hon'ble AP High Court has dissented from the ratio of CIT Vs Delhi Gymkhana Cub Ltd. [2011) {339 ITR 525] which was relied upon by the AR. Also, the Hon'ble Karnataka High Court in a latest decision in Page 3 of 15 ITA Nos 98 to 101 of 2022 The Fateh Maidan Club Brigada Plaza Unit Owners Association Vs. ITO, Ward 5(2)(3L Bangalore [129 taxmann.com 51] [25-2-2021] has categorically held that the doctrine of mutuality is certainly not applicable to…

Armed Forces Co-Operative Housing Society Limited, Secunderabad vs. Asst. Commissioner of Income Tax, Circle-15(1), Hyderabad

Appeals are dismissed”

ITA 648/HYD/2018[2014-15]Status: DisposedITAT Hyderabad01 Feb 2021AY 2014-15

Bench: Shri A.Mohan Alankamony & Shri S.S.Godara

For Appellant: Shri B.Prabhakar, ARFor Respondent: Shri Rohit Mujumdar, DR
Section 143(3)

…regard, it is relevant to refer to the fact that on the said issue of principle of mutuality in the case of CIT Vs. Secunderabad Club, the Hon'ble High Court of Andhra Pradesh distinguished the decisions of Delhi High Court in the case of Delhi Gymkhana Club (339 ITR 525) and concurred with the decision of Karnataka High Court in the case of Bangalore Club (257 ITR 263) and the decision of Karnataka High Court held to be final with the SLP filed by Bangalore Club on similar issue rejected by Supreme Court. :- 6 -: The Armed Forces Officers Co-operative Housing Society Ltd., (Group) Essence of the decision of Ho…

The Armed Forces Officers Co-Operative Housing Society Limiyrf, Secunderabad vs. Asst. Commissioner of Income Tax, Circle-15(1), Hyderabad

Appeals are dismissed”

ITA 1017/HYD/2017[2013-14]Status: DisposedITAT Hyderabad01 Feb 2021AY 2013-14

Bench: Shri A.Mohan Alankamony & Shri S.S.Godara

For Appellant: Shri B.Prabhakar, ARFor Respondent: Shri Rohit Mujumdar, DR
Section 143(3)

…regard, it is relevant to refer to the fact that on the said issue of principle of mutuality in the case of CIT Vs. Secunderabad Club, the Hon'ble High Court of Andhra Pradesh distinguished the decisions of Delhi High Court in the case of Delhi Gymkhana Club (339 ITR 525) and concurred with the decision of Karnataka High Court in the case of Bangalore Club (257 ITR 263) and the decision of Karnataka High Court held to be final with the SLP filed by Bangalore Club on similar issue rejected by Supreme Court. :- 6 -: The Armed Forces Officers Co-operative Housing Society Ltd., (Group) Essence of the decision of Ho…

Armed Forces Co-Operative Housing Society Ltd., Secunderabad vs. Income Tax Officer, Ward-10(3)., Hyderabad

Appeals are dismissed”

ITA 1016/HYD/2017[2012-13]Status: DisposedITAT Hyderabad01 Feb 2021AY 2012-13

Bench: Shri A.Mohan Alankamony & Shri S.S.Godara

For Appellant: Shri B.Prabhakar, ARFor Respondent: Shri Rohit Mujumdar, DR
Section 143(3)

…regard, it is relevant to refer to the fact that on the said issue of principle of mutuality in the case of CIT Vs. Secunderabad Club, the Hon'ble High Court of Andhra Pradesh distinguished the decisions of Delhi High Court in the case of Delhi Gymkhana Club (339 ITR 525) and concurred with the decision of Karnataka High Court in the case of Bangalore Club (257 ITR 263) and the decision of Karnataka High Court held to be final with the SLP filed by Bangalore Club on similar issue rejected by Supreme Court. :- 6 -: The Armed Forces Officers Co-operative Housing Society Ltd., (Group) Essence of the decision of Ho…

The Armed Forces Officers Co-Operative Housing Society Limited, Secunderabad vs. Income Tax Officer, Ward-10(3), Hyderabad

Appeals are dismissed”

ITA 1015/HYD/2017[2011-12]Status: DisposedITAT Hyderabad01 Feb 2021AY 2011-12

Bench: Shri A.Mohan Alankamony & Shri S.S.Godara

For Appellant: Shri B.Prabhakar, ARFor Respondent: Shri Rohit Mujumdar, DR
Section 143(3)

…regard, it is relevant to refer to the fact that on the said issue of principle of mutuality in the case of CIT Vs. Secunderabad Club, the Hon'ble High Court of Andhra Pradesh distinguished the decisions of Delhi High Court in the case of Delhi Gymkhana Club (339 ITR 525) and concurred with the decision of Karnataka High Court in the case of Bangalore Club (257 ITR 263) and the decision of Karnataka High Court held to be final with the SLP filed by Bangalore Club on similar issue rejected by Supreme Court. :- 6 -: The Armed Forces Officers Co-operative Housing Society Ltd., (Group) Essence of the decision of Ho…

The Armed Forces Officers Co-Operative Housing Society Limited, Secunderabad vs. Income Tax Officer, Ward-10(3), Hyderabad

Appeals are dismissed”

ITA 1014/HYD/2017[2010-11]Status: DisposedITAT Hyderabad01 Feb 2021AY 2010-11

Bench: Shri A.Mohan Alankamony & Shri S.S.Godara

For Appellant: Shri B.Prabhakar, ARFor Respondent: Shri Rohit Mujumdar, DR
Section 143(3)

…regard, it is relevant to refer to the fact that on the said issue of principle of mutuality in the case of CIT Vs. Secunderabad Club, the Hon'ble High Court of Andhra Pradesh distinguished the decisions of Delhi High Court in the case of Delhi Gymkhana Club (339 ITR 525) and concurred with the decision of Karnataka High Court in the case of Bangalore Club (257 ITR 263) and the decision of Karnataka High Court held to be final with the SLP filed by Bangalore Club on similar issue rejected by Supreme Court. :- 6 -: The Armed Forces Officers Co-operative Housing Society Ltd., (Group) Essence of the decision of Ho…

The Armed Forces Officers Co-Operative Housing Society Limited, Secunderabad vs. Income Tax Officer, Ward-10(3), Hyderabad

Appeals are dismissed”

ITA 1013/HYD/2017[2009-10]Status: DisposedITAT Hyderabad01 Feb 2021AY 2009-10

Bench: Shri A.Mohan Alankamony & Shri S.S.Godara

For Appellant: Shri B.Prabhakar, ARFor Respondent: Shri Rohit Mujumdar, DR
Section 143(3)

…regard, it is relevant to refer to the fact that on the said issue of principle of mutuality in the case of CIT Vs. Secunderabad Club, the Hon'ble High Court of Andhra Pradesh distinguished the decisions of Delhi High Court in the case of Delhi Gymkhana Club (339 ITR 525) and concurred with the decision of Karnataka High Court in the case of Bangalore Club (257 ITR 263) and the decision of Karnataka High Court held to be final with the SLP filed by Bangalore Club on similar issue rejected by Supreme Court. :- 6 -: The Armed Forces Officers Co-operative Housing Society Ltd., (Group) Essence of the decision of Ho…

Swarn Jayanti Rail Nagar Flat Owners Association, Noida vs. CIT(A)- 1, Noida

In the result appeal of the assessee is allowed

ITA 3783/DEL/2018[2014-15]Status: DisposedITAT Delhi28 Nov 2018AY 2014-15

Bench: Shri Amit Shukla

For Appellant: Shri G.C. Srivastava, AdvocateFor Respondent: Shri C.P. Singh, Sr.DR
Section 11Section 12ASection 143(3)Section 271(1)(c)

…k in the form of FDRs and the interest accrued thereon has been applied for the maintenance and welfare of the members only. In support, he relied upon the judgment of Hon’ble Jurisdictional High Court in the case of CIT vs. Delhi Gymkhana Club Limited (2011) 339 ITR 525; and CIT vs. Talangang Cooperative Group Housing Society Ltd. (2010) 195 Taxman 110 (Delhi). He pointed out that all these decisions have been referred and relied upon by the Tribunal in the earlier years. On the issue of benefit of exemption u/s 11, he submitted that, whence assessee was granted registration u/s 12A, then it is incumbent upon th…

Swarn Jayanti Rail Nagar Flat Owners Association, Noida vs. CIT(A)- 1, Noida

In the result appeal of the assessee is allowed

ITA 3782/DEL/2018[2013-14]Status: DisposedITAT Delhi28 Nov 2018AY 2013-14

Bench: Shri Amit Shukla

For Appellant: Shri G.C. Srivastava, AdvocateFor Respondent: Shri C.P. Singh, Sr.DR
Section 11Section 12ASection 143(3)Section 271(1)(c)

…k in the form of FDRs and the interest accrued thereon has been applied for the maintenance and welfare of the members only. In support, he relied upon the judgment of Hon’ble Jurisdictional High Court in the case of CIT vs. Delhi Gymkhana Club Limited (2011) 339 ITR 525; and CIT vs. Talangang Cooperative Group Housing Society Ltd. (2010) 195 Taxman 110 (Delhi). He pointed out that all these decisions have been referred and relied upon by the Tribunal in the earlier years. On the issue of benefit of exemption u/s 11, he submitted that, whence assessee was granted registration u/s 12A, then it is incumbent upon th…

Swarn Jayanti Rail Nagar Flat Owners Association, Noida vs. CIT(A)- 1, Noida

In the result appeal of the assessee is allowed

ITA 3781/DEL/2018[2012-13]Status: DisposedITAT Delhi28 Nov 2018AY 2012-13

Bench: Shri Amit Shukla

For Appellant: Shri G.C. Srivastava, AdvocateFor Respondent: Shri C.P. Singh, Sr.DR
Section 11Section 12ASection 143(3)Section 271(1)(c)

…k in the form of FDRs and the interest accrued thereon has been applied for the maintenance and welfare of the members only. In support, he relied upon the judgment of Hon’ble Jurisdictional High Court in the case of CIT vs. Delhi Gymkhana Club Limited (2011) 339 ITR 525; and CIT vs. Talangang Cooperative Group Housing Society Ltd. (2010) 195 Taxman 110 (Delhi). He pointed out that all these decisions have been referred and relied upon by the Tribunal in the earlier years. On the issue of benefit of exemption u/s 11, he submitted that, whence assessee was granted registration u/s 12A, then it is incumbent upon th…

Swarn Jayanti Rail Nagar Flat Owners Association, Noida vs. ITO, Exemption Ward, Ghaziabad

In the result appeal of the assessee is allowed

ITA 2010/DEL/2018[2014-15]Status: DisposedITAT Delhi28 Nov 2018AY 2014-15

Bench: Shri Amit Shukla

For Appellant: Shri G.C. Srivastava, AdvocateFor Respondent: Shri C.P. Singh, Sr.DR
Section 11Section 12ASection 143(3)Section 271(1)(c)

…k in the form of FDRs and the interest accrued thereon has been applied for the maintenance and welfare of the members only. In support, he relied upon the judgment of Hon’ble Jurisdictional High Court in the case of CIT vs. Delhi Gymkhana Club Limited (2011) 339 ITR 525; and CIT vs. Talangang Cooperative Group Housing Society Ltd. (2010) 195 Taxman 110 (Delhi). He pointed out that all these decisions have been referred and relied upon by the Tribunal in the earlier years. On the issue of benefit of exemption u/s 11, he submitted that, whence assessee was granted registration u/s 12A, then it is incumbent upon th…

Swarn Jayanti Rail Nagar Flat Owners Association, Noida vs. ITO, Exemption Ward, Ghaziabad

In the result appeal of the assessee is allowed

ITA 2009/DEL/2018[2013-14]Status: DisposedITAT Delhi28 Nov 2018AY 2013-14

Bench: Shri Amit Shukla

For Appellant: Shri G.C. Srivastava, AdvocateFor Respondent: Shri C.P. Singh, Sr.DR
Section 11Section 12ASection 143(3)Section 271(1)(c)

…k in the form of FDRs and the interest accrued thereon has been applied for the maintenance and welfare of the members only. In support, he relied upon the judgment of Hon’ble Jurisdictional High Court in the case of CIT vs. Delhi Gymkhana Club Limited (2011) 339 ITR 525; and CIT vs. Talangang Cooperative Group Housing Society Ltd. (2010) 195 Taxman 110 (Delhi). He pointed out that all these decisions have been referred and relied upon by the Tribunal in the earlier years. On the issue of benefit of exemption u/s 11, he submitted that, whence assessee was granted registration u/s 12A, then it is incumbent upon th…

Swarn Jayanti Rail Nagar Flat Owners Association, Noida vs. ITO, Exemption Ward, Ghaziabad

In the result appeal of the assessee is allowed

ITA 2008/DEL/2018[2012-13]Status: DisposedITAT Delhi28 Nov 2018AY 2012-13

Bench: Shri Amit Shukla

For Appellant: Shri G.C. Srivastava, AdvocateFor Respondent: Shri C.P. Singh, Sr.DR
Section 11Section 12ASection 143(3)Section 271(1)(c)

…k in the form of FDRs and the interest accrued thereon has been applied for the maintenance and welfare of the members only. In support, he relied upon the judgment of Hon’ble Jurisdictional High Court in the case of CIT vs. Delhi Gymkhana Club Limited (2011) 339 ITR 525; and CIT vs. Talangang Cooperative Group Housing Society Ltd. (2010) 195 Taxman 110 (Delhi). He pointed out that all these decisions have been referred and relied upon by the Tribunal in the earlier years. On the issue of benefit of exemption u/s 11, he submitted that, whence assessee was granted registration u/s 12A, then it is incumbent upon th…

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

…awnpore Club (140 Taxman 378) ITA Nos.1997 & 1998/Mds/2016 ITA Nos.1403 & 1404/Mds/2017 :- 5 -: The case laws where it has been held that interests on fixed deposits are also exempted on mutuality principle are as under: a) CIT vs Delhi Gymkhana Club Ltd. (339 ITR 525, Delhi). b) DIT vs All India Oriental Bank of Commerce Welfare Society (130 Taxman 575, Delhi). c) CIT vs Talangang Co- operation Group Housing Society Ltd. (339 ITR 518, Delhi). d) CIT vs Standing Conferences of Public Enterprises (Scope) (319 ITR 179, Delhi). e) Chelmsferd Club vs CIT (243 ITR 89-SC). It has been held by Karnataka High Court t…

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

…awnpore Club (140 Taxman 378) ITA Nos.1997 & 1998/Mds/2016 ITA Nos.1403 & 1404/Mds/2017 :- 5 -: The case laws where it has been held that interests on fixed deposits are also exempted on mutuality principle are as under: a) CIT vs Delhi Gymkhana Club Ltd. (339 ITR 525, Delhi). b) DIT vs All India Oriental Bank of Commerce Welfare Society (130 Taxman 575, Delhi). c) CIT vs Talangang Co- operation Group Housing Society Ltd. (339 ITR 518, Delhi). d) CIT vs Standing Conferences of Public Enterprises (Scope) (319 ITR 179, Delhi). e) Chelmsferd Club vs CIT (243 ITR 89-SC). It has been held by Karnataka High Court t…

DCIT Cir 3(3), Mumbai vs. Sicom Ltd, Mumbai

In the result, appeal of Revenue is dismissed whereas appeal of the assessee is allowed in part in terms indicated hereinabove

ITA 1685/MUM/2009[2003-2004]Status: DisposedITAT Mumbai06 Dec 2016AY 2003-2004

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm M/S. Sicom Ltd., Vs. Dcit – 3(3) – Mumbai-20 Nirmal, 1St Floor, Nariman Point, Mumbai – 400 021 Pan/Gir No. Aaacs5524J Appellant) .. Respondent) & Dcit – 3(3) – Mumbai- Vs. M/S. Sicom Ltd., Nirmal, 1St Floor, Nariman Point, 20 Mumbai – 400 021 Pan/Gir No. Aaacs5524J Appellant) .. Respondent)

Section 115JSection 143(3)Section 234BSection 41

…ne 2014 (Cochin)  Nilgiri Tea Estate Ltd., (ITA No.377/Coch/2014) dated 29th February 2012 (Cochin)  Harrisons Malayalam Ltd., 32 SOT 497 (Coch)  M/s. Delhi Gymkhana Clum Limited (ITA No.3585/Del/2006) dated 30th September 2009 approved by Delhi High Court 339 ITR 525  M/s. Shivalik Venture Pvt. Ltd., (ITA No.2008/Mum/2012) dated 19 August 2015  L.H.Sugar Factory Ltd., (46 CCH 354 (2016)(Lucknow Trib)  Binani Industries Ltd., (2016)46 CCH212)(Kol Trib)  M/s. Karnataka Soaps & Detergents Ltd., (ITA No.257 of 2007) dated 13 October 2014 (Kar HC) 13. In the case of Nilgiri Tea Estate Ltd., (ITA No.37/Coch/201…