CIT v. W.I.A.A. Club Ltd.

136 ITR 569High Court1982#2990 most cited

What is CIT v. W.I.A.A. Club Ltd. authority for?

Lifetime membership fees received by a club are treated as capital receipts of an enduring nature and are therefore not taxable as income. The acquisition of membership rights through such fees does not result in a return.

39

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2025.

Also referred to as

CIT v. W.I.A.A. Club Ltd. · 136 ITR 569 · lifetime membership fee · capital receipt · enduring nature · club income · taxable income · Bombay High Court · entrance fee

Sections most often in play

Section 11Section 11(5)Section 12Section 12AASection 13Section 143(3)Section 147Section 148

Issues it is cited on

application of income for charitable purposesreal income theoryapplication of incomesection 12aaregular assessmentdouble taxationsection 11transfersection 148section 147personsection 143(3)

Judgments citing CIT v. W.I.A.A. Club Ltd.

Council of Architecture, New Delhi vs. ITO (Exemption), Ward-1(3), New Delhi

In the result, the appeal of the assessee for Assessment Year 2012-

ITA 955/DEL/2019[2012-13]Status: DisposedITAT Delhi13 Aug 2025AY 2012-13

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Sushil Kumar, AdvFor Respondent: Ms. Harpreet Kaur Hansra, Sr. DR
Section 11Section 12ASection 143(3)

…eported in 278 ITR 659 (Del), wherein it was held that voluntary donation received by the trust was treated as revenue receipt. The ld AR placed reliance on the decision of the Hon‟ble Bombay High Court in the case of CIT Vs. W.I.A.A. Club Limited reported in 136 ITR 569 (Bom), wherein the life time membership fee received by the club was treated as capital receipt, being receipt of enduring nature. 9. Ultimately, we find that receipt of one time life membership fee by the assessee and treatment given thereon in the books is the dispute before us. The assessee has been consistently following practice of ITA Nos.…

Council of Architecture, New Delhi vs. ITO (Exemption), Ward-1(3), New Delhi

In the result, the appeal of the assessee for Assessment Year 2012-

ITA 952/DEL/2019[2014-15]Status: DisposedITAT Delhi13 Aug 2025AY 2014-15

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Sushil Kumar, AdvFor Respondent: Ms. Harpreet Kaur Hansra, Sr. DR
Section 11Section 12ASection 143(3)

…eported in 278 ITR 659 (Del), wherein it was held that voluntary donation received by the trust was treated as revenue receipt. The ld AR placed reliance on the decision of the Hon‟ble Bombay High Court in the case of CIT Vs. W.I.A.A. Club Limited reported in 136 ITR 569 (Bom), wherein the life time membership fee received by the club was treated as capital receipt, being receipt of enduring nature. 9. Ultimately, we find that receipt of one time life membership fee by the assessee and treatment given thereon in the books is the dispute before us. The assessee has been consistently following practice of ITA Nos.…

Subodh Gupta, Delhi vs. JCIT, New Delhi

In the result, the appeal of the assessee for Assessment Year 2012-

ITA 955/DEL/2016[2011-12]Status: DisposedITAT Delhi31 Jan 2025AY 2011-12

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Sushil Kumar, AdvFor Respondent: Ms. Harpreet Kaur Hansra, Sr. DR
Section 11Section 12ASection 143(3)

…eported in 278 ITR 659 (Del), wherein it was held that voluntary donation received by the trust was treated as revenue receipt. The ld AR placed reliance on the decision of the Hon‟ble Bombay High Court in the case of CIT Vs. W.I.A.A. Club Limited reported in 136 ITR 569 (Bom), wherein the life time membership fee received by the club was treated as capital receipt, being receipt of enduring nature. 9. Ultimately, we find that receipt of one time life membership fee by the assessee and treatment given thereon in the books is the dispute before us. The assessee has been consistently following practice of ITA Nos.…

The Sports Club of Gujarat Ltd., Ahmedabad vs. The Pr. CIT-4, Ahmedabad

In the result, we are of the view that in light of the discussion above,

ITA 360/AHD/2020[2015-16]Status: DisposedITAT Ahmedabad28 Apr 2022AY 2015-16
For Appellant: Shri S.N. Soparkar, Sr. A.R. &For Respondent: Shri James Kurian, CIT-D.R
Section 143(3)Section 263

…utive centre'. The entrance fee was a one-time fee and only members were eligible to avail of the facilities available in the 'executive centre' and the entrance fee was non-refundable, following the decision in the case of CIT v. W. I. A. A. Club Ltd. [1982] 136 ITR 569 (Bom), it is held by the Bombay High Court that the entrance fees were paid to the club in order to acquire the right to avail of the services and facilities extended by the club and therefore, the receipts constituted capital receipts. 13. In view of the above discussion, accepting the arguments of the assessee that the receipts on account of e…

ITO 5(2)(3), Mumbai vs. Malabar Hills Club Ltd, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 3592/MUM/2015[2010-11]Status: DisposedITAT Mumbai22 Apr 2022AY 2010-11

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Amarjit Singh, Hon'Bleincome Tax Officer – 5(2)(3) V. M/S. Malabar Hill Club Limited Room No. 566, 5Th Floor B.G. Kher Marg, Malabar Hill Aayakar Bhavan, M.K. Road Mumbai - 400006 Mumbai - 400020 Pan: Aaacw3868M (Appellant) (Respondent) Assessee By : Shri Niraj D. Sheth & Shri Vishal Asrani Department By : Shri T. Shankar

For Appellant: Shri Niraj D. Sheth and Shri Vishal AsraniFor Respondent: Shri T. Shankar
Section 143(3)

…ry members as taxable income of the Appellant for the year. 4. The aforesaid addition has been made by the Assessing Officer in complete disregard/misinterpretation/misapplication of the decision of Hon'ble Bombay High Court in its own case reported in (1982) 136 ITR 569. 5. In this connection it is submitted that in terms of the aforesaid decision it has been clearly laid down that the membership fees received from ordinary members is in the nature of capital receipt and hence not taxable — the relevant extract of the judgment of Hon'ble Bombay High Court in the Appellant's case is reproduced hereunder for your…

Poona Club Ltd, Pune vs. Deputy Commissioner of Income-Tax, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 892/PUN/2017[2008-09]Status: DisposedITAT Pune20 Apr 2022AY 2008-09

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…in the case of ACIT vs. Karnavati Club Ltd., 4 ITR 174. 34. The issue whether the entrance fee is as revenue account or capital account is no more res-integra as the issue was decided by the Hon’ble Bombay High Court in the case of CIT vs. W.I.A.A. Club Ltd., 136 ITR 569 (Bom.-HC) wherein it held as follows :- “Now, it is important to bear in mind that though entrance fee is received by the assessee from time to time, it is received from different persons and it is not one of those payments which are made by the same person by virtue of any recurring liability. Entrance fee is paid by a member only once and it is…

Poona Club Ltd, Pune vs. Deputy Commissioner of Income-Tax, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 891/PUN/2017[2007-08]Status: DisposedITAT Pune20 Apr 2022AY 2007-08

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…in the case of ACIT vs. Karnavati Club Ltd., 4 ITR 174. 34. The issue whether the entrance fee is as revenue account or capital account is no more res-integra as the issue was decided by the Hon’ble Bombay High Court in the case of CIT vs. W.I.A.A. Club Ltd., 136 ITR 569 (Bom.-HC) wherein it held as follows :- “Now, it is important to bear in mind that though entrance fee is received by the assessee from time to time, it is received from different persons and it is not one of those payments which are made by the same person by virtue of any recurring liability. Entrance fee is paid by a member only once and it is…

Poona Club Ltd, Pune vs. Deputy Commissioner of Income-Tax, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 890/PUN/2017[2006-07]Status: DisposedITAT Pune20 Apr 2022AY 2006-07

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…in the case of ACIT vs. Karnavati Club Ltd., 4 ITR 174. 34. The issue whether the entrance fee is as revenue account or capital account is no more res-integra as the issue was decided by the Hon’ble Bombay High Court in the case of CIT vs. W.I.A.A. Club Ltd., 136 ITR 569 (Bom.-HC) wherein it held as follows :- “Now, it is important to bear in mind that though entrance fee is received by the assessee from time to time, it is received from different persons and it is not one of those payments which are made by the same person by virtue of any recurring liability. Entrance fee is paid by a member only once and it is…

Assistant Commissioner of Income-Tax, Circle - 4, Pune vs. M/S. Poona Club Ltd, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 1939/PUN/2017[2013-14]Status: DisposedITAT Pune20 Apr 2022AY 2013-14

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…in the case of ACIT vs. Karnavati Club Ltd., 4 ITR 174. 34. The issue whether the entrance fee is as revenue account or capital account is no more res-integra as the issue was decided by the Hon’ble Bombay High Court in the case of CIT vs. W.I.A.A. Club Ltd., 136 ITR 569 (Bom.-HC) wherein it held as follows :- “Now, it is important to bear in mind that though entrance fee is received by the assessee from time to time, it is received from different persons and it is not one of those payments which are made by the same person by virtue of any recurring liability. Entrance fee is paid by a member only once and it is…

Assistant Commissioner of Income Tax, Pune vs. M/S. Poona Club Ltd., Pune

In the result, the appeal filed by the Revenue in ITA

ITA 1238/PUN/2017[2012-13]Status: DisposedITAT Pune20 Apr 2022AY 2012-13

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…in the case of ACIT vs. Karnavati Club Ltd., 4 ITR 174. 34. The issue whether the entrance fee is as revenue account or capital account is no more res-integra as the issue was decided by the Hon’ble Bombay High Court in the case of CIT vs. W.I.A.A. Club Ltd., 136 ITR 569 (Bom.-HC) wherein it held as follows :- “Now, it is important to bear in mind that though entrance fee is received by the assessee from time to time, it is received from different persons and it is not one of those payments which are made by the same person by virtue of any recurring liability. Entrance fee is paid by a member only once and it is…

Assistant Commissioner of Income Tax, Pune vs. M/S. Poona Club Ltd., Pune

In the result, the appeal filed by the Revenue in ITA

ITA 1237/PUN/2017[2011-12]Status: DisposedITAT Pune20 Apr 2022AY 2011-12

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…in the case of ACIT vs. Karnavati Club Ltd., 4 ITR 174. 34. The issue whether the entrance fee is as revenue account or capital account is no more res-integra as the issue was decided by the Hon’ble Bombay High Court in the case of CIT vs. W.I.A.A. Club Ltd., 136 ITR 569 (Bom.-HC) wherein it held as follows :- “Now, it is important to bear in mind that though entrance fee is received by the assessee from time to time, it is received from different persons and it is not one of those payments which are made by the same person by virtue of any recurring liability. Entrance fee is paid by a member only once and it is…

Assistant Commissioner of Income Tax, Pune vs. M/S. Poona Club Ltd., Pune

In the result, the appeal filed by the Revenue in ITA

ITA 1235/PUN/2017[2008-09]Status: DisposedITAT Pune20 Apr 2022AY 2008-09

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…in the case of ACIT vs. Karnavati Club Ltd., 4 ITR 174. 34. The issue whether the entrance fee is as revenue account or capital account is no more res-integra as the issue was decided by the Hon’ble Bombay High Court in the case of CIT vs. W.I.A.A. Club Ltd., 136 ITR 569 (Bom.-HC) wherein it held as follows :- “Now, it is important to bear in mind that though entrance fee is received by the assessee from time to time, it is received from different persons and it is not one of those payments which are made by the same person by virtue of any recurring liability. Entrance fee is paid by a member only once and it is…

Poona Club Ltd, Pune vs. Deputy Commissioner of Income-Tax, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 895/PUN/2017[2012-13]Status: DisposedITAT Pune20 Apr 2022AY 2012-13

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…in the case of ACIT vs. Karnavati Club Ltd., 4 ITR 174. 34. The issue whether the entrance fee is as revenue account or capital account is no more res-integra as the issue was decided by the Hon’ble Bombay High Court in the case of CIT vs. W.I.A.A. Club Ltd., 136 ITR 569 (Bom.-HC) wherein it held as follows :- “Now, it is important to bear in mind that though entrance fee is received by the assessee from time to time, it is received from different persons and it is not one of those payments which are made by the same person by virtue of any recurring liability. Entrance fee is paid by a member only once and it is…

Poona Club Ltd, Pune vs. Deputy Commissioner of Income-Tax, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 894/PUN/2017[2011-12]Status: DisposedITAT Pune20 Apr 2022AY 2011-12

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…in the case of ACIT vs. Karnavati Club Ltd., 4 ITR 174. 34. The issue whether the entrance fee is as revenue account or capital account is no more res-integra as the issue was decided by the Hon’ble Bombay High Court in the case of CIT vs. W.I.A.A. Club Ltd., 136 ITR 569 (Bom.-HC) wherein it held as follows :- “Now, it is important to bear in mind that though entrance fee is received by the assessee from time to time, it is received from different persons and it is not one of those payments which are made by the same person by virtue of any recurring liability. Entrance fee is paid by a member only once and it is…

Poona Club Ltd, Pune vs. Deputy Commissioner of Income-Tax, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 893/PUN/2017[2009-10]Status: DisposedITAT Pune20 Apr 2022AY 2009-10

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…in the case of ACIT vs. Karnavati Club Ltd., 4 ITR 174. 34. The issue whether the entrance fee is as revenue account or capital account is no more res-integra as the issue was decided by the Hon’ble Bombay High Court in the case of CIT vs. W.I.A.A. Club Ltd., 136 ITR 569 (Bom.-HC) wherein it held as follows :- “Now, it is important to bear in mind that though entrance fee is received by the assessee from time to time, it is received from different persons and it is not one of those payments which are made by the same person by virtue of any recurring liability. Entrance fee is paid by a member only once and it is…

Poona Club Ltd, Pune vs. Deputy Commissioner of Income-Tax, Circle - 4, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 2242/PUN/2017[2014-15]Status: DisposedITAT Pune20 Apr 2022AY 2014-15

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…in the case of ACIT vs. Karnavati Club Ltd., 4 ITR 174. 34. The issue whether the entrance fee is as revenue account or capital account is no more res-integra as the issue was decided by the Hon’ble Bombay High Court in the case of CIT vs. W.I.A.A. Club Ltd., 136 ITR 569 (Bom.-HC) wherein it held as follows :- “Now, it is important to bear in mind that though entrance fee is received by the assessee from time to time, it is received from different persons and it is not one of those payments which are made by the same person by virtue of any recurring liability. Entrance fee is paid by a member only once and it is…

Assistant Commissioner of Income-Tax, Circle - 4, Pune vs. M/S. Poona Club Ltd, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 2221/PUN/2017[2014-15]Status: DisposedITAT Pune20 Apr 2022AY 2014-15

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…in the case of ACIT vs. Karnavati Club Ltd., 4 ITR 174. 34. The issue whether the entrance fee is as revenue account or capital account is no more res-integra as the issue was decided by the Hon’ble Bombay High Court in the case of CIT vs. W.I.A.A. Club Ltd., 136 ITR 569 (Bom.-HC) wherein it held as follows :- “Now, it is important to bear in mind that though entrance fee is received by the assessee from time to time, it is received from different persons and it is not one of those payments which are made by the same person by virtue of any recurring liability. Entrance fee is paid by a member only once and it is…

Poona Club Ltd., Pune vs. Deputy Commissioner of Income-Tax, Circle - 4, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 1653/PUN/2017[2013-14]Status: DisposedITAT Pune20 Apr 2022AY 2013-14

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…in the case of ACIT vs. Karnavati Club Ltd., 4 ITR 174. 34. The issue whether the entrance fee is as revenue account or capital account is no more res-integra as the issue was decided by the Hon’ble Bombay High Court in the case of CIT vs. W.I.A.A. Club Ltd., 136 ITR 569 (Bom.-HC) wherein it held as follows :- “Now, it is important to bear in mind that though entrance fee is received by the assessee from time to time, it is received from different persons and it is not one of those payments which are made by the same person by virtue of any recurring liability. Entrance fee is paid by a member only once and it is…

Assistant Commissioner of Income Tax, Pune vs. M/S. Poona Club Ltd., Pune

In the result, the appeal filed by the Revenue in ITA

ITA 1236/PUN/2017[2009-10]Status: DisposedITAT Pune20 Apr 2022AY 2009-10

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Ravisl.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri M. G. Jasnani
Section 143(1)Section 143(3)Section 147Section 148

…in the case of ACIT vs. Karnavati Club Ltd., 4 ITR 174. 34. The issue whether the entrance fee is as revenue account or capital account is no more res-integra as the issue was decided by the Hon’ble Bombay High Court in the case of CIT vs. W.I.A.A. Club Ltd., 136 ITR 569 (Bom.-HC) wherein it held as follows :- “Now, it is important to bear in mind that though entrance fee is received by the assessee from time to time, it is received from different persons and it is not one of those payments which are made by the same person by virtue of any recurring liability. Entrance fee is paid by a member only once and it is…

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

…he copy of said written communication dated 14.10.2016 filed with the AO is now filed before the tribunal, which is placed in file.The 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.T…