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TMI Blog2015 (4) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... es have partly sponsored the events, apparently as a part of their respective sales promotion activities. Hence, the objective of the assessee in receiving these contributions, in our view, can only be considered to be to meet part of the expenditure incurred in organizing the events. Hence, in our view, there is no intention to earn any income out of the above said contributions, since it only goes to reduce the expenditure. - contribution cannot be subjected to tax as income in the hands of the assessee. It is an accepted fact that the complimentary liquor has been sold at a price, meaning thereby the intention of the assessee was to make profit out of sale of complimentary liquors. Thus the action of the assessee was commercial in nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has claimed certain receipts as exempt from taxation under mutuality principles. The first issue relates to the assessment of ₹ 1,25,000/- relating to the amounts received by way of sponsorship for various events organized by the assessee. The AO noticed that the following companies have contributed to certain events organized by the assessee. Diego India P Ltd (Barnite event) Rs.35,000/- McDowell Ltd (Jazznite event) Rs.40,000/- Centurion Bank Ltd (Holi event) Rs.50,000/-. Since the contributors were non-members, the AO took the view that the above said contributions are assessable as the income of the assessee. Accordingly he assessed the above said receipts as income of the assessee and the Ld CIT(A) also confirmed the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny income out of the above said contributions, since it only goes to reduce the expenditure. Hence, we are of the view the above said contribution cannot be subjected to tax as income in the hands of the assessee. Accordingly, we set aside the order of Ld CIT(A) on this issue and direct the AO to delete this addition. 7. The next issue contested by the assessee relates to the value of complimentary liquors assessed by the AO as income of the assessee. The AO took the value of complimentary liquors is to be assessed as income of the assessee, since the assessee has failed to furnish the details of persons who consumed the complimentary liquor. He also took the view that the complimentary liquor could have been used by non-members also and a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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