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TMI Blog2013 (12) TMI 991X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant : Shri N K Saini, DR For the Respondent : Shri S K Mukhi ORDER:- Per: Sushma Chowla: These two appeals by the Revenue are against the separate order of the Commissioner of Income Tax (Appeals), Panchkula each dated 03.10.2010 relating to assessment year 2009-10 against the order passed u/s 143(3) of Income Tax Act, 1961 (in short 'the Act'). 2. Both these appeals by the Revenue against the same assessee were heard together and are being disposed off by this consolidated order for the sake of convenience. 2. The Revenue has raised following common grounds of appeal, which read as under: "1. The Ld. CIT(A) has erred in holding that the assessee club is a mutual concern disregarding the finding of A.O. that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure were incurred through HUDA. The Assessing Officer thus observed that this issue of control is being highlighted to show that there is no complete equality between the contributors of the club. The Assessing Officer vide para 5 further noted that the assessee was receiving interest income from fixed deposits held with various banks, sources of which were the membership fee and other charges received by the assessee from its members. The withdrawal of the said amount and the use to which it could be put was totally in the hands of management of club. The claim of the assessee before the Assessing Officer was that in view of the decision of the Hon'ble Supreme Court in the case of CIT Vs. Bankipur Club [226 ITR 97 (SC), the income was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,510/-. The learned D.R. for the Revenue fairly pointed out that the total income earned by the assessee was held to be exempt on the principles of mutuality by the Tribunal in assessee's own case in earlier years. However, the Hon'ble Supreme Court in Bangalore Club Vs. CIT Others in Civil Appeal No. 124 of 2007 had held that doctrine of mutuality was applicable upon surplus amount but the amount of interest earned by the assessee from the banks would not fall within the ambit of mutuality principles and would, therefore, be exigible to tax in the hands of the assessee club. It is further pointed out by the learned D.R. for the Revenue that in the case of Bangalore Club Vs. CIT Others (supra) the assessee had included the interest on F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were identical except that the total surplus worked out was 47,00,693/- which included interest income of Rs.34,78,851/- and interest on saving account of Rs.35,140/-. 14. We have heard the rival contentions and perused the record. The first issue arising in the present appeal is with regard to the applicability of principles of mutuality. The assessee club had shown the receipt from its members as not taxable in its hands. Further the assessee during the year under consideration had received interest on FDRs and also interest on saving account which was also claimed as exempt from tax following the principles of mutuality. We find that similar issue arose in assessee's own case in ITA No.777/Chd/2007 relating to assessment year 2004-05 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income received by the assessee during the year under consideration was less than the said income assessed in the hands of the assessee and hence we find no merit in the plea of the learned A.R. for the assessee that by applying ratio laid down by the Hon'ble Apex Court in Bangalore Club Vs. CIT Others (supra), it would result in enhancement of income in the hands of the assessee. The Hon'ble Apex Court lays down the law of land as it existed and the same is to be applied and in any case by applying the said ratio and bringing the interest income earned by the assessee during the year to tax, does not result in any enhancement of income. Hence, the said plea of the learned A.R. for the assessee is rejected. 15. Similarly, in ITA No.131 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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