CIT v. Secunderabad Club Picket

340 ITR 121High Court2012#8416 most cited

What is CIT v. Secunderabad Club Picket authority for?

Interest earned by a club on deposits with banks, even member banks, is taxable income and not covered by the principle of mutuality. The mutuality ends when the club deposits surplus funds with a bank solely to earn interest.

13

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2019 to 2022.

Also referred to as

CIT v. Secunderabad Club Picket · 340 ITR 121 · principle of mutuality · interest on deposits · taxable income · member banks · AO · CIT(A) · housing society · cooperative society

Judgments citing CIT v. Secunderabad Club Picket

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

…Since the interest was earned from third party banks, the decision of the Hon'ble Supreme Court in Bangalore Club (cited supra) is directly applicable to the facts of the present case. Further, the Andhra Pradesh High Court in CIT Vs Secunderabad Club Picket [340 ITR 121] [2012] in a detailed order after considering a host of judicial decisions including CIT vs Cawnpore Club Ltd {2004] 140 Taxmann 378 (SC), CIT vs Bankipur Club ltd. [1997] [92 taxmann 278] [Se] held that the interest earned on fixed deposits is taxable and is not covered by the principle of mutuality. It was held therein that the principle of mut…

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

…Since the interest was earned from third party banks, the decision of the Hon'ble Supreme Court in Bangalore Club (cited supra) is directly applicable to the facts of the present case. Further, the Andhra Pradesh High Court in CIT Vs Secunderabad Club Picket [340 ITR 121] [2012] in a detailed order after considering a host of judicial decisions including CIT vs Cawnpore Club Ltd {2004] 140 Taxmann 378 (SC), CIT vs Bankipur Club ltd. [1997] [92 taxmann 278] [Se] held that the interest earned on fixed deposits is taxable and is not covered by the principle of mutuality. It was held therein that the principle of mut…

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

…Since the interest was earned from third party banks, the decision of the Hon'ble Supreme Court in Bangalore Club (cited supra) is directly applicable to the facts of the present case. Further, the Andhra Pradesh High Court in CIT Vs Secunderabad Club Picket [340 ITR 121] [2012] in a detailed order after considering a host of judicial decisions including CIT vs Cawnpore Club Ltd {2004] 140 Taxmann 378 (SC), CIT vs Bankipur Club ltd. [1997] [92 taxmann 278] [Se] held that the interest earned on fixed deposits is taxable and is not covered by the principle of mutuality. It was held therein that the principle of mut…

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

…Since the interest was earned from third party banks, the decision of the Hon'ble Supreme Court in Bangalore Club (cited supra) is directly applicable to the facts of the present case. Further, the Andhra Pradesh High Court in CIT Vs Secunderabad Club Picket [340 ITR 121] [2012] in a detailed order after considering a host of judicial decisions including CIT vs Cawnpore Club Ltd {2004] 140 Taxmann 378 (SC), CIT vs Bankipur Club ltd. [1997] [92 taxmann 278] [Se] held that the interest earned on fixed deposits is taxable and is not covered by the principle of mutuality. It was held therein that the principle of mut…

The Secunderbad Club, Hyderabad vs. ITO Ward -10(2), Hyderabad

Appeal is dismissed in above terms

ITA 166/HYD/2021[2016-17]Status: DisposedITAT Hyderabad27 Jan 2022AY 2016-17

Bench: Shri S.S.Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri S.Rama Rao, ARFor Respondent: Shri L.Jeevanlal, DR
Section 143(3)

…rom not only outside banks, but also member banks, cannot come under the ambit of principle of mutuality. 8.2 To be precise, the Hon'ble High Court of Andhra Pradesh in the assessee's own case for the AY 1996-97 as reported in CIT Vs. Secunderabad Club [2012] 340 ITR 121 held that the interest income earned from deposits with member banks is taxable in the hands of the assessee on the ground that such income does not come under the purview of principle of mutuality. It is not out of place to mention here that, after the decision of the jurisdictional High Court (supra), the Hon'ble Supreme Court in the case of Ba…

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)

…-operative Housing Society Ltd., (Group) ‘Principles of mutuality’. Such amounts were quantified at Rs. 19,02,097/- for AY. 2007-08 and Rs. 19,85,909/- for AY. 2008-09. AO relying on the decision of jurisdictional High Court in the case of Secunderabad Club [340 ITR 121] did not allow assessee’s claim. Assessee tried to distinguish the status and activities of the said club from that of a housing society and argued that the decision of Secunderabad Club [340 ITR 121] (supra) does not apply to assessee’s facts. Ld. CIT(A) however, based on the decision of jurisdictional High Court held that interest amount receiv…

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)

…-operative Housing Society Ltd., (Group) ‘Principles of mutuality’. Such amounts were quantified at Rs. 19,02,097/- for AY. 2007-08 and Rs. 19,85,909/- for AY. 2008-09. AO relying on the decision of jurisdictional High Court in the case of Secunderabad Club [340 ITR 121] did not allow assessee’s claim. Assessee tried to distinguish the status and activities of the said club from that of a housing society and argued that the decision of Secunderabad Club [340 ITR 121] (supra) does not apply to assessee’s facts. Ld. CIT(A) however, based on the decision of jurisdictional High Court held that interest amount receiv…

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)

…-operative Housing Society Ltd., (Group) ‘Principles of mutuality’. Such amounts were quantified at Rs. 19,02,097/- for AY. 2007-08 and Rs. 19,85,909/- for AY. 2008-09. AO relying on the decision of jurisdictional High Court in the case of Secunderabad Club [340 ITR 121] did not allow assessee’s claim. Assessee tried to distinguish the status and activities of the said club from that of a housing society and argued that the decision of Secunderabad Club [340 ITR 121] (supra) does not apply to assessee’s facts. Ld. CIT(A) however, based on the decision of jurisdictional High Court held that interest amount receiv…

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)

…-operative Housing Society Ltd., (Group) ‘Principles of mutuality’. Such amounts were quantified at Rs. 19,02,097/- for AY. 2007-08 and Rs. 19,85,909/- for AY. 2008-09. AO relying on the decision of jurisdictional High Court in the case of Secunderabad Club [340 ITR 121] did not allow assessee’s claim. Assessee tried to distinguish the status and activities of the said club from that of a housing society and argued that the decision of Secunderabad Club [340 ITR 121] (supra) does not apply to assessee’s facts. Ld. CIT(A) however, based on the decision of jurisdictional High Court held that interest amount receiv…

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)

…-operative Housing Society Ltd., (Group) ‘Principles of mutuality’. Such amounts were quantified at Rs. 19,02,097/- for AY. 2007-08 and Rs. 19,85,909/- for AY. 2008-09. AO relying on the decision of jurisdictional High Court in the case of Secunderabad Club [340 ITR 121] did not allow assessee’s claim. Assessee tried to distinguish the status and activities of the said club from that of a housing society and argued that the decision of Secunderabad Club [340 ITR 121] (supra) does not apply to assessee’s facts. Ld. CIT(A) however, based on the decision of jurisdictional High Court held that interest amount receiv…

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)

…-operative Housing Society Ltd., (Group) ‘Principles of mutuality’. Such amounts were quantified at Rs. 19,02,097/- for AY. 2007-08 and Rs. 19,85,909/- for AY. 2008-09. AO relying on the decision of jurisdictional High Court in the case of Secunderabad Club [340 ITR 121] did not allow assessee’s claim. Assessee tried to distinguish the status and activities of the said club from that of a housing society and argued that the decision of Secunderabad Club [340 ITR 121] (supra) does not apply to assessee’s facts. Ld. CIT(A) however, based on the decision of jurisdictional High Court held that interest amount receiv…

DDIT (E), New Delhi vs. National Association of Software and Service Companies, New Delhi

In the result, appeal of the revenue is dismissed

ITA 6521/DEL/2013[2009-10]Status: DisposedITAT Delhi20 Sept 2019AY 2009-10

Bench: Shri Prashant Maharishi & Shri K. Narasimha Chary

For Appellant: Shri Aajy Vohra, Sr. AdvocateFor Respondent: Ms Naina Soin Kapil, Sr.DR
Section 11Section 12ASection 2(15)Section 28

…urnover etc. Takes away the case from the nature of charitable purpose and the ld. AO is justified in denying the benefit of Section 11 to the assessee. Learned DR placed reliance on the decision reported in the case of CIT vs Secunderabad Club Picket, (2012) 340 ITR 121(AP) wherein it was held that the principle of mutuality ended the moment the club deposited the amount with the sole purpose of earning interest on the deposits. 8. Per contra by placing reliance on the decisions reported (i) CIT vs Merchant Navy Club, 96 ITR 261 (AP); (ii) CIT vs Bankipur Club Ltd., 226 ITR 97 (SC); (iii) Chelmsford Club vs CIT,…

Telugu Film Producers Mutually Aided Co-Operative Housing Society Limited, Hyderabad vs. Income Tax Officer, Ward-14(5), Hyderabad

In the result, appeal of the assessee is allowed

ITA 1057/HYD/2018[2013-14]Status: DisposedITAT Hyderabad12 Jun 2019AY 2013-14

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahmanassessment Year: 2013-14

For Appellant: Shri Pawan KumarFor Respondent: Shri Nilanjan Dey
Section 143(2)Section 57Section 70

…with banks and not earned from the members, the principles of mutuality would not be applicable to this receipt. In view of the above observations, the AO relying on the decision of the Hon’ble Jurisdictional High Court in the case of Secunderabad Club [2012] 340 ITR 121 and rejecting the submissions of the assessee, held that the interest income of Rs. 24,09,065/- on FDs is taxable under 3 I.T.A. No. 1057/Hyd/18 Telugu film Producers Mutually Aided Cooperative Housing Society ltd., Hyd. the head ‘income from other sources’. Further, he held that since the interest expenditure of Rs. 1,44,39,159, was not incurre…

CIT v. Secunderabad Club Picket (340 ITR 121) — Cited in 13 Judgments | BharatTax