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

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

In the result appeal of the assessee in ITA no

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)

…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…

ITO (E) 1(3), Mumbai vs. Indian Insitution of Industrial Engineering, Navi Mumbai

Bench: Shri G.S Pannu, Am & Shri Ravish Sood, Jm

…his predecessor relying on the judgments of P a g e | 5 ITO Vs. Indian Institute of Industrial Training the Hon’ble High Court of Bombay in the case of Trustees of Shri Kot Hindu Stree Mandal Vs. CIT (1994) 209 ITR 396 (Bom) and CIT Vs. WIAA Club Ltd. (1982) 136 ITR 569 (Bom), had held that the A.O was not justified in taxing the entrance fees received from the students by treating the same as revenue receipts and thus not granting exemption under Sec.11 in respect thereof. The CIT(A) being of the view that as the facts during the year under consideration remained the same as were involved in the case of the ass…

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

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

Bench: Shri P K Bansal & Shri Pawan Singh

…r in a search action, though later retracted, the AO subjected such fees to tax for assessment years 2003-04 to 2008-09. When the matter went before the CIT, the CIT, on the basis of the decision in the 3 M/s. Natvar Parikh & Co. P. Ltd. case of CIT vs. WIAA, 136 ITR 569 held that part of the entrance fees partake the nature of annual subscription and part as capital receipts. The Revenue therefore accepted for assessment years 2003-04 and 2004-05 that non- refundable entrance fees are capital receipts and therefore not taxable. It was further submitted that it was not a case of no enquiry as during the course of…

ITO (E) 1(3), Mumbai vs. Indian Institute of Industrial Engineering, Navi Mumbai

Bench: Shri Rajendra, Am & Shri Ravish Sood, Jm

…rather has much to do with the status of the particular class of the member, therefore, the same takes the color and character as that of a capital receipt. We further find that the Hon’ble High Court of Bombay in the case of CIT Vs. W.I.A.A Club Ltd. (1992) 136 ITR 569 (Bom), had held that the ‘entrance fees’ only vests a right of membership, and though the member by making such payment does not get any return in the form P a g e | 9 ITO Vs. Indian Institute of Industrial Training of services or amenities, but all that he gets is a right to avail of the amenities or facilities provided by the institution. We h…

DCIT 5(2), Mumbai vs. Malbar Hill Club Ltd, Mumbai

In the result, appeal of the assessee is allowed

Bench: Shri G.S. Pannu & Shri Amarjit Singh: (A.Y : 2008-09)

…this regard, it was a common point between the parties that the said issue is a recurring issue and in the past years, the same has been held in favour of the assessee following the judgment of the Hon'ble Bombay High Court in assessee’s own case reported in 136 ITR 569 (Bom). The CIT(A) has relied upon order of his predecessor for Assessment Year 2006-07 in setting aside the action of Assessing Officer. 14. At the time of hearing, it has been pointed out that the decision of CIT(A) for Assessment Year 2006-07 has been approved by the Tribunal vide its order in ITA No. 517/Mum/2010 & others dated 26.8.2015. It…

Malabar Hill Club Ltd., Mumbai vs. D.C.I.T. Circle 5(2), Mumbai

In the result, appeal of the assessee is allowed

Bench: Shri G.S. Pannu & Shri Amarjit Singh: (A.Y : 2008-09)

…this regard, it was a common point between the parties that the said issue is a recurring issue and in the past years, the same has been held in favour of the assessee following the judgment of the Hon'ble Bombay High Court in assessee’s own case reported in 136 ITR 569 (Bom). The CIT(A) has relied upon order of his predecessor for Assessment Year 2006-07 in setting aside the action of Assessing Officer. 14. At the time of hearing, it has been pointed out that the decision of CIT(A) for Assessment Year 2006-07 has been approved by the Tribunal vide its order in ITA No. 517/Mum/2010 & others dated 26.8.2015. It…

DCIT 5(2), Mumbai vs. Malabar Hill Club Ltd, Mumbai

In the result, the appeal of the revenue and cross objection of the assessee are hereby dismissed

Bench: Shri Joginder Singh & Shri N.K. Pradhanassessment Year: 2009-10 Dcit-5(2), M/S Malabar Hill Club R. No.571, Aaykar Bhavan Limited, बनाम/ M.K. Road, Il Palazzo, B.K. Kher Vs. Mumbai-400020 Marg, Malabar Hill, Mumbai-400006 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. Aaacw3868M

…ssessee submitted that this issue has now covered by the order of the CIT(A) for the A.Y.2005-06 who decided this issue in favour of the assessee relying upon the Bombay High Court judgement in the assessee’s own case for the year 1963-64 and 1964-65 cited in 136 ITR 569. In the said judgement allocation of relevant receipts in the ratio of 20:80 on life membership receipts i.e. capital receipts and revenue receipts was decided by the Hon’ble Bombay High Court. The said ratio is relevant for that year under consideration and is not universally applicable for all the assessment year of the assessee. The ratio laid…

ACIT 9(1), Mumbai vs. Aakash Lavlesh Leisure P.Ltd, Mumbai

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.7905/Mum/2011 ("नधा"रण वष" / Assessment Year : 2008-09) Aakash Lavlesh Leisure Ito -9(1)(1), बनाम/ Private Limited Aayakar Bhavan V. Juhu Club Millenium Mumbai-400020 A-1, Gulmohar Road Jvpd Scheme, Juhu Mumbai-400 049

…ership which can be regarded as one time receipt in substitution of recurring receipts. Thus, it was submitted that entrance fees is capital receipt which is supported by the decision of Hon’ble Bombay High Court in the case of CIT v. WIAA Club Limited (1979) 136 ITR 569( Bom.) which view is supported by Accounting Standard AS-9 issued by ICAI was the contention of the assessee before the AO. Without prejudice, it was submitted that even if the said entrance fees is regarded as revenue receipts, the same cannot be treated as income until the promise of completion of the project with the provision of all faciliti…

ACIT 9(1), Mumbai vs. Aakash Lavlesh Leisure P.Ltd, Mumbai

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.7905/Mum/2011 ("नधा"रण वष" / Assessment Year : 2008-09) Aakash Lavlesh Leisure Ito -9(1)(1), बनाम/ Private Limited Aayakar Bhavan V. Juhu Club Millenium Mumbai-400020 A-1, Gulmohar Road Jvpd Scheme, Juhu Mumbai-400 049

…ership which can be regarded as one time receipt in substitution of recurring receipts. Thus, it was submitted that entrance fees is capital receipt which is supported by the decision of Hon’ble Bombay High Court in the case of CIT v. WIAA Club Limited (1979) 136 ITR 569( Bom.) which view is supported by Accounting Standard AS-9 issued by ICAI was the contention of the assessee before the AO. Without prejudice, it was submitted that even if the said entrance fees is regarded as revenue receipts, the same cannot be treated as income until the promise of completion of the project with the provision of all faciliti…

ACIT 9(1), Mumbai vs. Aakash Lavlesh Leisure P.Ltd, Mumbai

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.7905/Mum/2011 ("नधा"रण वष" / Assessment Year : 2008-09) Aakash Lavlesh Leisure Ito -9(1)(1), बनाम/ Private Limited Aayakar Bhavan V. Juhu Club Millenium Mumbai-400020 A-1, Gulmohar Road Jvpd Scheme, Juhu Mumbai-400 049

…ership which can be regarded as one time receipt in substitution of recurring receipts. Thus, it was submitted that entrance fees is capital receipt which is supported by the decision of Hon’ble Bombay High Court in the case of CIT v. WIAA Club Limited (1979) 136 ITR 569( Bom.) which view is supported by Accounting Standard AS-9 issued by ICAI was the contention of the assessee before the AO. Without prejudice, it was submitted that even if the said entrance fees is regarded as revenue receipts, the same cannot be treated as income until the promise of completion of the project with the provision of all faciliti…

Addl CIT 9(1), Mumbai vs. Aakash Lavlesh Leisure P.Ltd, Mumbai

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.7905/Mum/2011 ("नधा"रण वष" / Assessment Year : 2008-09) Aakash Lavlesh Leisure Ito -9(1)(1), बनाम/ Private Limited Aayakar Bhavan V. Juhu Club Millenium Mumbai-400020 A-1, Gulmohar Road Jvpd Scheme, Juhu Mumbai-400 049

…ership which can be regarded as one time receipt in substitution of recurring receipts. Thus, it was submitted that entrance fees is capital receipt which is supported by the decision of Hon’ble Bombay High Court in the case of CIT v. WIAA Club Limited (1979) 136 ITR 569( Bom.) which view is supported by Accounting Standard AS-9 issued by ICAI was the contention of the assessee before the AO. Without prejudice, it was submitted that even if the said entrance fees is regarded as revenue receipts, the same cannot be treated as income until the promise of completion of the project with the provision of all faciliti…

ITO 9(1)(1), Mumbai vs. Aakash Lavlesh Leisure (P) Ltd, Mumbai

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.7905/Mum/2011 ("नधा"रण वष" / Assessment Year : 2008-09) Aakash Lavlesh Leisure Ito -9(1)(1), बनाम/ Private Limited Aayakar Bhavan V. Juhu Club Millenium Mumbai-400020 A-1, Gulmohar Road Jvpd Scheme, Juhu Mumbai-400 049

…ership which can be regarded as one time receipt in substitution of recurring receipts. Thus, it was submitted that entrance fees is capital receipt which is supported by the decision of Hon’ble Bombay High Court in the case of CIT v. WIAA Club Limited (1979) 136 ITR 569( Bom.) which view is supported by Accounting Standard AS-9 issued by ICAI was the contention of the assessee before the AO. Without prejudice, it was submitted that even if the said entrance fees is regarded as revenue receipts, the same cannot be treated as income until the promise of completion of the project with the provision of all faciliti…

Aakash Lavlesh Leisure P. Ltd, Mumbai vs. ITO 9(1)(1), Mumbai

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.7905/Mum/2011 ("नधा"रण वष" / Assessment Year : 2008-09) Aakash Lavlesh Leisure Ito -9(1)(1), बनाम/ Private Limited Aayakar Bhavan V. Juhu Club Millenium Mumbai-400020 A-1, Gulmohar Road Jvpd Scheme, Juhu Mumbai-400 049

…ership which can be regarded as one time receipt in substitution of recurring receipts. Thus, it was submitted that entrance fees is capital receipt which is supported by the decision of Hon’ble Bombay High Court in the case of CIT v. WIAA Club Limited (1979) 136 ITR 569( Bom.) which view is supported by Accounting Standard AS-9 issued by ICAI was the contention of the assessee before the AO. Without prejudice, it was submitted that even if the said entrance fees is regarded as revenue receipts, the same cannot be treated as income until the promise of completion of the project with the provision of all faciliti…

DCIT 5(2), Mumbai vs. Malbar Hill Club Ltd, Mumbai

In the result, the appeal of the revenue and cross objection of the assessee are hereby dismissed

Bench: Shri D. Karunakar Rao, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.292/M/12 ("नधा"रण वष" / Assessment Year: 2003-04) Deputy Commissioner Of बनाम/ M/S. Malabar Hill Club Income Tax 5(2), R.No.571, Limited Vs. Aayakar Bhavan, M.K.Road, Il Palazzo, B.K.Kher Marg, Mumbai - 400020 Malbar Hill, Mumbai-400006

…ssessee submitted that this issue has now covered by the order of the CIT(A) for the A.Y.2005-06 who decided this issue in favour of the assessee relying upon the Bombay High Court judgement in the assessee’s own case for the year 1963-64 and 1964-65 cited in 136 ITR 569. In the said judgement allocation of relevant receipts in the ratio of 20:80 on life membership receipts i.e. capital receipts and revenue receipts was decided by the Hon’ble Bombay High Court. The said ratio is relevant for that year under consideration and is not universally applicable for all the assessment year of the assessee. The ratio laid…

Natvar Parikh & Co.P. Ltd, Mumbai vs. ACIT Cen Cir 40, Mumbai

In the result, appeals of the assessee are allowed in part, whereas appeal of revenue is dismissed

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm आमकय अऩीर सं./Ita No.2146&2147/Mum/2009 & Ita No.2283/Mum/2011 (नििाारण वषा / Assessment Year :2006-07 To 2008-09) M/S Natvar Parikh & Co. Pvt. Vs. Dcit, Cc-40, Mumbai-20 Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai- 400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./Ita No.2986/Mum/2009 (नििाारण वषा / Assessment Year :2007-08) Acit, Cc-40, Mumbai-20 Vs. M/S Natvar Parikh & Co. Pvt. Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai-400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. ननधाारयती की ओर से /Assessee By : Shri Madhur Agarwal याजस्व की ओर से /Revenue By : Shri N.P.Singh सुनवाई की तायीख / Date Of Hearing : 16/08/2015 घोषणा की तायीख/Date Of Pronouncement 20/11/2015 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Appeals Filed By The Assessee & Revenue Against The Order Of Cit(A), Mumbai, For The Assessment Years 2006-07 To 2008- 09. 2. In Asessee’S Appeal (I.E.

…ld that the entrance fee received from a member by the assessee therein was a capital receipt not liable to tax. While holding that the entrance fees are not liable to tax, the High court has relied on the earlier decision in the case of CIT Vs WIAA Club Ltd [136 ITR 569] where the entrance fee was paid by a member only once. It is further argued that the ratio laid down by the High Court is directly applicable to its case. The amount received by the assessee as one time entrance fee is in entirety the amount paid for vesting right of membership in the members and to acquire right to avail of the services and fac…

ACIT Cen Cir 40, Mumbai vs. Natwar Parikh & Co. P. Ltd, Mumbai

In the result, appeals of the assessee are allowed in part, whereas appeal of revenue is dismissed

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm आमकय अऩीर सं./Ita No.2146&2147/Mum/2009 & Ita No.2283/Mum/2011 (नििाारण वषा / Assessment Year :2006-07 To 2008-09) M/S Natvar Parikh & Co. Pvt. Vs. Dcit, Cc-40, Mumbai-20 Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai- 400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./Ita No.2986/Mum/2009 (नििाारण वषा / Assessment Year :2007-08) Acit, Cc-40, Mumbai-20 Vs. M/S Natvar Parikh & Co. Pvt. Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai-400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. ननधाारयती की ओर से /Assessee By : Shri Madhur Agarwal याजस्व की ओर से /Revenue By : Shri N.P.Singh सुनवाई की तायीख / Date Of Hearing : 16/08/2015 घोषणा की तायीख/Date Of Pronouncement 20/11/2015 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Appeals Filed By The Assessee & Revenue Against The Order Of Cit(A), Mumbai, For The Assessment Years 2006-07 To 2008- 09. 2. In Asessee’S Appeal (I.E.

…ld that the entrance fee received from a member by the assessee therein was a capital receipt not liable to tax. While holding that the entrance fees are not liable to tax, the High court has relied on the earlier decision in the case of CIT Vs WIAA Club Ltd [136 ITR 569] where the entrance fee was paid by a member only once. It is further argued that the ratio laid down by the High Court is directly applicable to its case. The amount received by the assessee as one time entrance fee is in entirety the amount paid for vesting right of membership in the members and to acquire right to avail of the services and fac…

Natvar Parikh & Company Pvt.Ltd., Mumbai vs. The Dy.C.I.T., Central Circle 40, Mumbai

In the result, appeals of the assessee are allowed in part, whereas appeal of revenue is dismissed

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm आमकय अऩीर सं./Ita No.2146&2147/Mum/2009 & Ita No.2283/Mum/2011 (नििाारण वषा / Assessment Year :2006-07 To 2008-09) M/S Natvar Parikh & Co. Pvt. Vs. Dcit, Cc-40, Mumbai-20 Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai- 400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./Ita No.2986/Mum/2009 (नििाारण वषा / Assessment Year :2007-08) Acit, Cc-40, Mumbai-20 Vs. M/S Natvar Parikh & Co. Pvt. Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai-400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. ननधाारयती की ओर से /Assessee By : Shri Madhur Agarwal याजस्व की ओर से /Revenue By : Shri N.P.Singh सुनवाई की तायीख / Date Of Hearing : 16/08/2015 घोषणा की तायीख/Date Of Pronouncement 20/11/2015 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Appeals Filed By The Assessee & Revenue Against The Order Of Cit(A), Mumbai, For The Assessment Years 2006-07 To 2008- 09. 2. In Asessee’S Appeal (I.E.

…ld that the entrance fee received from a member by the assessee therein was a capital receipt not liable to tax. While holding that the entrance fees are not liable to tax, the High court has relied on the earlier decision in the case of CIT Vs WIAA Club Ltd [136 ITR 569] where the entrance fee was paid by a member only once. It is further argued that the ratio laid down by the High Court is directly applicable to its case. The amount received by the assessee as one time entrance fee is in entirety the amount paid for vesting right of membership in the members and to acquire right to avail of the services and fac…

Natvar Parikh & Company Pvt.Ltd., Mumbai vs. The Dy.C.I.T., Central Circle 40, Mumbai

In the result, appeals of the assessee are allowed in part, whereas appeal of revenue is dismissed

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm आमकय अऩीर सं./Ita No.2146&2147/Mum/2009 & Ita No.2283/Mum/2011 (नििाारण वषा / Assessment Year :2006-07 To 2008-09) M/S Natvar Parikh & Co. Pvt. Vs. Dcit, Cc-40, Mumbai-20 Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai- 400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सं./Ita No.2986/Mum/2009 (नििाारण वषा / Assessment Year :2007-08) Acit, Cc-40, Mumbai-20 Vs. M/S Natvar Parikh & Co. Pvt. Ltd., 96, Chembur Mankhurd Link Road, Shivaji Nagar, Mumbai-400043 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaacn 2937 Q (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. ननधाारयती की ओर से /Assessee By : Shri Madhur Agarwal याजस्व की ओर से /Revenue By : Shri N.P.Singh सुनवाई की तायीख / Date Of Hearing : 16/08/2015 घोषणा की तायीख/Date Of Pronouncement 20/11/2015 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Appeals Filed By The Assessee & Revenue Against The Order Of Cit(A), Mumbai, For The Assessment Years 2006-07 To 2008- 09. 2. In Asessee’S Appeal (I.E.

…ld that the entrance fee received from a member by the assessee therein was a capital receipt not liable to tax. While holding that the entrance fees are not liable to tax, the High court has relied on the earlier decision in the case of CIT Vs WIAA Club Ltd [136 ITR 569] where the entrance fee was paid by a member only once. It is further argued that the ratio laid down by the High Court is directly applicable to its case. The amount received by the assessee as one time entrance fee is in entirety the amount paid for vesting right of membership in the members and to acquire right to avail of the services and fac…