9911796707
TMI Blog2016 (4) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court in the case of Sports Club of Gujrat Limited (1987 (10) TMI 21 - GUJARAT High Court ) there is no principle of mutuality between the interest income from the F.D.R. and other activities of the club. - Decided in favour of the Revenue - Miscellaneous Appeal No. 541, 542 of 2007 - - - Dated:- 11-3-2016 - Hemant Gupta And Ramesh Kumar Datta, JJ. For the Appellant : Mr. Ajay Kumar Rastogi, Adv For the Respondent : Mrs. Archana Sinha, Sr. Standing Counsel, Mr. Alok Kumar, Adv. Ms. Shalini Bihari, Adv JUDGMENT ( Per: Honourable Mr. Justice Hemant Gupta ) The assessee is in appeal under Section 260A of the Income Tax Act, 1961 arising out of an order passed by the Income Tax Appellate Tribunal, Patna Bench, Pat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent in the case of CIT Vs. Bankipur club[1997] 226 ITR page 97 and also upon the judgment in the case of Chemsford Club Vs. CIT 243 ITR 87. 4. On the other hand, argument of learned counsel for the Revenue is that the income derived from interest is from other sources and principle of mutuality does not apply to the income so derived from the fixed deposit. She has placed reliance upon a Division Bench judgment of Gujarat High Court in the case of Sports Club of Gujrat Limited Vs. Commissioner of Income Tax 171 ITR 504 which has been referred to by the Commissioner, Income Tax (Appeals) as well as by the Tribunal. 5. We do not find any substantial question of law arises for consideration. In Bankipur Club Ltd.'s case, seven cases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t held as under:- 8. We now revert to the question whether the income derived by way of interest on fixed deposits from banks is exigible to tax notwithstanding the finding that the principle of mutuality applies to the assessee club. We have already pointed out earlier that one of the essentials of mutuality is that the contributors to the common fund are entitled to participate in the surplus, thereby creating an identity between the participators and the contributors. Once such an identity is established, the surplus income would not be exigible to tax on the principle that no man can make a profit out of himself. However, as pointed out earlier, the objects clause in the memorandum and articles of association empowers those in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come received by the assessee club by way of interest is exigible to tax. 8. Thus we find that the principle of mutuality is not available to the assessee. We do not find that any such inference can be drawn from the order of the Supreme Court in Cawnpore Club Ltd.' Case supra if read along with the order passed in Banikpur Club Ltd (supra). We find that the interest income cannot be form the house property and consequently this income is from other sources. 9. In view of judgment of Gujarat High Court in the case of Sports Club of Gujrat Limited (supra) there is no principle of mutuality between the interest income from the F.D.R. and other activities of the club. 10. In view thereof, the questions of law are answered in aff ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
