What is CIT v. Diners Business Services (P.) Ltd. authority for?

An assessment order passed in conformity with a jurisdictional High Court ruling, such as CIT v. Diners Business Services (P.) Ltd., cannot be considered erroneous and thus is not amenable to revision under Section 263 of the Income Tax Act. Entrance fees paid by a member to acquire club rights are capital receipts, not revenue receipts.

How many judgments cite CIT v. Diners Business Services (P.) Ltd.?

40 judgments on BharatTax cite CIT v. Diners Business Services (P.) Ltd. (263 ITR 1), spanning 2015 to 2025.

CIT v. Diners Business Services (P.) Ltd. (263 ITR 1)

DCIT 8(1)(1), Mumbai vs. Royal Western Indua Turf Club Ltd, Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 3237/MUM/2017[2012-13]Status: DisposedITAT Mumbai22 Jan 2021AY 2012-13

Bench: Shri Rajesh Kumar & Shri Pavan Kumar Gadale

For Appellant: Smt Mamta Bansal, CIT-DRFor Respondent: Shri Salis Kapoor

Section 143(1)Section 143(2)Section 143(3)

…s is in the nature of lifetime membership fees, hence it cannot be treated as annual subscription as the same is collected once in lifetime, therefore, it is a capital receipt. The Hon’ble jurisdictional High Court in CIT vs Diners Business Services Pvt. Ltd. 263 ITR 1(Bom.) held that any sum paid by a member to acquire the rights of a club is a capital receipt. We further note that for Assessment Year 2003-04, while framing the assessment u/s 143(3) of the Act and also for Assessment Year 2001-02, identically the claim of the assessee was allowed. No contrary material was brought to our notice. It is also noted…

Natvar Parikh & Co. P.Ltd, Mumbai vs. CIT Cen IV, Mumbai

In the result, this ground of appeal is partly allowed

ITA 2082/MUM/2015[2010-11]Status: DisposedITAT Mumbai25 Feb 2020AY 2010-11

Bench: Shri R.C. Sharma & Shri Pawan Singh

For Appellant: Shri Madhur Agarwal (AR)For Respondent: Shri Michael Jerald (DR)

Section 143(2)Section 14ASection 254(1)Section 40Section 40A

…case. From the record we found that the AO has taxed entire entrance fee for giving membership of Club for 25 years, in the year of receipt itself. As per Ld. AR the fee so received was capital in nature as per decision of Dinners Business Services Pvt. Ltd. 263 ITR 1. We found that in case of Dinners Business Services Pvt. Ltd (supra) the membership so received was for whole-life and not for specified period of time, whereas in the instant case after expiry of 25 years, member was to again pay entrance fee, therefore, facts of the instant case are distinguishable from the case of Dinners Business Services Pvt.…

Thane Bharat Sahakari Bank Ltd., Thane vs. D.C.I.T. Circle-3, Thane

In the result appeal of the assessee in ITA no

ITA 1038/MUM/2018[2013-14]Status: DisposedITAT Mumbai22 Apr 2019AY 2013-14

Bench: Shri Pawan Singh & Shri Ramit Kocharita Nos.1037 & 1038/Mum/2018 (Assessment Years: 2012-13 & 2013-14) Thane Bharat Sahakari Bank Asstt. Commissioner Of Income Ltd. Tax, Circle-3 Shatatarka, Baji Prabhu Asher It Park, 6Th Floor, Deshpande Marg, Road No. 16Z, V. Vishnu Nagar, Wagle Industrial Estate, Thane -400 602 Thane (W), 400604 Maharashtra Pan – Aaajt1230F (Appellant) (Respondent)

For Appellant: Shri Shekhar A. Desai(CEO) &For Respondent: Shri V. Justin, D.R

Section 143(2)Section 143(3)Section 2Section 22

…assessee has also relied on the decision of the Hon‟ble Bombay High Court in the case of CIT v. W.I.A.A. Club Limited (1982) 136 ITR 569(Bom.) and also decision of Hon‟ble Bombay High Court in the case of CIT v. Diners Business Services Private Limited (2003) 263 ITR 1(Bom.) to contend that entrance fee and membership fee be treated as capital receipts not exigible to tax. 5.2 The ld. D.R on the other hand explained that these are revenue receipts which should be brought to tax.The learned DR would rely on the appellate order passed by learned CIT(A). 6. We have heard both the parties , perused the material avai…

Thane Bharat Sahakari Bank Ltd., Thane vs. A.C.I.T. Circle-3, Thane

In the result appeal of the assessee in ITA no

ITA 1037/MUM/2018[2012-13]Status: DisposedITAT Mumbai22 Apr 2019AY 2012-13

Bench: Shri Pawan Singh & Shri Ramit Kocharita Nos.1037 & 1038/Mum/2018 (Assessment Years: 2012-13 & 2013-14) Thane Bharat Sahakari Bank Asstt. Commissioner Of Income Ltd. Tax, Circle-3 Shatatarka, Baji Prabhu Asher It Park, 6Th Floor, Deshpande Marg, Road No. 16Z, V. Vishnu Nagar, Wagle Industrial Estate, Thane -400 602 Thane (W), 400604 Maharashtra Pan – Aaajt1230F (Appellant) (Respondent)

For Appellant: Shri Shekhar A. Desai(CEO) &For Respondent: Shri V. Justin, D.R

Section 143(2)Section 143(3)Section 2Section 22

…assessee has also relied on the decision of the Hon‟ble Bombay High Court in the case of CIT v. W.I.A.A. Club Limited (1982) 136 ITR 569(Bom.) and also decision of Hon‟ble Bombay High Court in the case of CIT v. Diners Business Services Private Limited (2003) 263 ITR 1(Bom.) to contend that entrance fee and membership fee be treated as capital receipts not exigible to tax. 5.2 The ld. D.R on the other hand explained that these are revenue receipts which should be brought to tax.The learned DR would rely on the appellate order passed by learned CIT(A). 6. We have heard both the parties , perused the material avai…

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

…m is utilised for the promotion of sports and games. The admission fee received from the corporate members is actually a capital or corpus receipt [Please see the judgment of the Hon'ble Bombay High Court in CIT -vs- Diners Business Services Pvt. Ltd., [2003) 263 ITR 1 (Bom)], If such interest and dividend (Rs.70,94,226/-) and transfer from capital Reserve (Rs.71,75,000/-) are excluded from income, one is left with a figure of Rs. 6,53,00,906/- on the income side which is lower than the 5 I.T.A No. 1105/Kol/2017 M/s. Calcutta Cricket & Football Club expenses/overheads ofRs.7,02,23,355/- by Rs.49,22,449/-. In the…

Natvar Parikh & Co. P.Ltd, Mumbai vs. CIT Cen IV, Mumbai

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

ITA 444/MUM/2014[2009-10]Status: DisposedITAT Mumbai24 Oct 2017AY 2009-10

Bench: Shri P K Bansal & Shri Pawan Singh

For Appellant: Shri Madhur AgarwalFor Respondent: Shri Anand Mohan

Section 143(3)Section 263

…examined by him." In response thereto the assessee submitted that there is no error in the order passed under section 263. The issue involved is covered by the decision of the Hon'ble Jurisdictional High Court in the case of Diners Business Services Pvt. Ltd. 263 ITR 1 in which it was held that the entrance fees are not liable to be taxed. It was further submitted that for A.Y. 2003-04 one time non- refundable fees was offered to tax but a revised return was filed contending the same to be non-taxable capital receipts on the basis of the judgement of the Hon'ble Bombay High Court. This contention was accepted by…

Asst CIT 8(1)(1), Mumbai vs. Royal Western India Truf Club Ltd, Mumbai

In the result, the appeals are dismissed

ITA 5570/MUM/2015[2011-12]Status: DisposedITAT Mumbai22 Sept 2017AY 2011-12

Bench: Shri D T Garasia & Shri N K Pradhan

For Appellant: Shri Purushottam KumarFor Respondent: Shri Salil Kapoor, Ms. Saumya Singh &

Section 143(3)Section 263

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “D”, MUMBAI Before Shri D T Garasia, Judicial Member & Shri N K Pradhan, Accountant Member ITA Nos.5569 & 5570/Mum/2015 Assessment Years : 2010-11 & 2011-12 ACIT 8(1)(1) Royal Western India Truf Club Ltd Mumbai Mahalaxmi Race Course, Vs. Mahalaxmi Mumbai 400 034 PAN AABCR8519H (Appellant) (Respondent) Appellant By : Shri Purushottam Kumar Respondent By : Shri Salil Kapoor, Ms. Saumya Singh & Shri Sumit Lalchandani Date of Hearing :14.09.2017 Date of Pronouncement : 22.09.2017 O R D E R Per D T Garasia, Judicial Member: These appeals have been filed by th…

Asst CIT 8(1)(1), Mumbai vs. Royal Western India Truf Club Ltd, Mumbai

In the result, the appeals are dismissed

ITA 5569/MUM/2015[2010-11]Status: DisposedITAT Mumbai22 Sept 2017AY 2010-11

Bench: Shri D T Garasia & Shri N K Pradhan

For Appellant: Shri Purushottam KumarFor Respondent: Shri Salil Kapoor, Ms. Saumya Singh &

Section 143(3)Section 263

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “D”, MUMBAI Before Shri D T Garasia, Judicial Member & Shri N K Pradhan, Accountant Member ITA Nos.5569 & 5570/Mum/2015 Assessment Years : 2010-11 & 2011-12 ACIT 8(1)(1) Royal Western India Truf Club Ltd Mumbai Mahalaxmi Race Course, Vs. Mahalaxmi Mumbai 400 034 PAN AABCR8519H (Appellant) (Respondent) Appellant By : Shri Purushottam Kumar Respondent By : Shri Salil Kapoor, Ms. Saumya Singh & Shri Sumit Lalchandani Date of Hearing :14.09.2017 Date of Pronouncement : 22.09.2017 O R D E R Per D T Garasia, Judicial Member: These appeals have been filed by th…