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TMI Blog2015 (11) TMI 1609X X X X Extracts X X X X X X X X Extracts X X X X ..... finding of the learned CIT(A) upholding the reopening u/s. 148 of the Act in his order in question dated 14.10.2011. CIT(A) merely followed his processed order who reliance upon the judgement of Hon’ble Bombay High Court for the A.Y.1964-65(1979 (1) TMI 5 - BOMBAY High Court). Requirement of splitting up of the entrance fee collected from life members in the ratio 20:80 is not the ratio of the cited judgement. To that extent, the decision of the learned CIT(A) is in order. Considering the above learned DR has not brought anything on record to show how the impugned order of learned CIT(A) decided on the strength of Bombay High Court judgement is not fair. We find the order of learned CIT(A) does not call for any interference. Thus, the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mbai, 80% of the life membership fees received is required to be treated as a income of the assessee. 3. Accordingly, an amount of ₹ 2,90,69,760/- i.e. 80% of ₹ 3,63,37,200/- was treated as revenue receipt and the same is brought to tax to tune of ₹ 86,39,500/-. Therefore, Assessing Officer made net addition of ₹ 2,04,30,260/-(Rs.2,90,69,760 - ₹ 86,39,500). Otherwise, assessee claim ₹ 3,63,37,200/- is capital in nature. Aggrieved, the assessee filed an appeal before learned CIT(A) and the learned CIT(A) rejected the plea of assessee. Therefore, the assessee has filed the present appeal before the Tribunal. 4. We have heard the arguments advanced by the learned representative of the parties and have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formed. Nothing was brought in to the notice that on which ground the notice u/s 148 is bad in law. Assessing Officer had a reason to believe that there was an escaped assessment. The Assessing Officer was of the view that an amount of entrance fees to the extent of 80% was to be taxable in view of the judgement of Hon ble Bombay High Court. Therefore, we found no ground to interfere with the finding of the learned CIT(A) upholding the reopening u/s. 148 of the Act in his order in question dated 14.10.2011. 5. Now coming to the appeal filed by the revenue, it is pleaded by learned DR that the membership fees received by the assessee club is liable to be taxable in view of the judgement Hon ble Bombay High Court but the said judgement ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om ordinary members is a capital receipts not liable to tax and the balance amount is infact compounded payment in lieu of annual subscriptions and therefore are revenue receipts. . Thus it will be seen that Bombay High Court has not laid down any ratio for the purpose of splitting entrance fee between revenue and capital receipt. Therefore, the Assessing Officer was wrong in splitting the fee received from life members into capital and revenue receipts in 20 : 80 ratio. That part of the entrance fee collected from life members, which collected from ordinary members, is to be treated as capital receipts and over and above this amount is to be treated as compounded mille of annual subscriptions and therefore this part is a taxable receipts a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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