2012 (7) TMI 1021 - AT - Income Tax

Summary

Issues involved: Appeal filed by Revenue regarding exemption u/s 11 of the Income Tax Act for A.Y. 2007-08.

Summary:
The appeal pertains to the assessment year 2007-08 and involves the question of whether the assessee, a society registered under the Bombay Public Trust Act, is eligible for exemption u/s 11 of the Income Tax Act. The Assessing Officer contended that the club's facilities were for its members and guests, based on the principle of mutuality, and therefore not eligible for exemption. However, the CIT(A) and ITAT Mumbai Benches held that the club was a Trust, not a mutual concern, and thus eligible for exemption u/s 11. The Revenue's appeal was based on a misinterpretation of the CIT(A)'s decision, as the status of the assessee was correctly identified as a Trust. The Tribunal upheld the decision in favor of the assessee, citing lack of new evidence to warrant a different conclusion. The appeal by the Revenue was dismissed, affirming the assessee's eligibility for exemption u/s 11.

In conclusion, the Tribunal upheld the decision in favor of the assessee, dismissing the Revenue's appeal and affirming the eligibility of the society for exemption u/s 11 of the Income Tax Act for the assessment year 2007-08.