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TMI Blog2010 (12) TMI 1334X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal filed by the Revenue. ITA No. 4075/Ahd/2008 Asst. Year 2005-06 (Assessee s appeal) 3. The assessee has raised following grounds for Asst. Year 2005-06:- (1) The CIT(A) has erred in holding that Guest Fees ₹ 3,90,217/- income from rooms ₹ 45,00,767/- and Law booking charges ₹ 4,50,000/- aggregating to ₹ 53,50,984/- is income from non-members/temporary members and hence principals of mutuality is not applicable and ₹ 53,50,984/- is a taxable income. (2) It is also submitted that CIT(A) has erred in not holding that interest income of ₹ 75,635/- earned by your appellant is also exempt on principles of mutuality. (3) The CIT(A) has erred in holding that decision of Hon. ITAT in appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total ₹ 53,50,984/- 7. We have heard the parties and carefully perused the material on record. In our considered view all the three issues are covered in favour of the assessee by various decisions of the Tribunal/Courts as under :- (1) Guest fees ₹ 3,90,217/- In ITA No.2793/Ahd/2006 Asst. Year 2003-04 ITA No.1398/Ahd/2007 Asst. Year 2004-05 vide order dated 30.10.2009 the Tribunal had observed as under :- At the very outset, Shri S. N. Soparkar, learned Counsel for the assessee submitted that income from rooms and lawn booking charges cannot be taxed on the basis of principle of mutuality as per the order of ITAT Ahmedabad D Bench dated 23-2-2007 passed in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case under consideration. The case of the Revenue is that the A.C. Hall and Lawn was given to the relatives and guests of the members. The Apex Court in the case of Chelmsford Club vs. CIT 243 ITR 89 held that doctrine of mutuality is applicable even to members and their guests. Since in the case under consideration the facilities of A.C. Hall and Lawn was provided to the guests of the members on account of the members himself and cannot be said that the facilities were provided to non-members and conditions are satisfied. We find that the assessee is entitled for the benefit of doctrine of mutuality. The decisions relied upon by the ld. DR are distinguishable on facts as those decisions have been decided by the Courts by considering the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of mutuality is not applicable and ₹ 45,44,622/- is a taxable income. 7. The facts of the case of the present year are similar to that of assessment year 2003-04 and, therefore, the decision rendered in ITA NO.2793/Ahd/2006 (supra) relating to assessment year 2003-04 shall apply to the facts of the present year also with equal force. According, we allow the ground of appeal raised by the assessee. Since these issues are already decided in past in favour of the assessee there is no reason to take a different view and hence these income are also treated as exempt in view of the principle of mutuality. As a result, this ground of assessee is allowed. 9. Ground No.3 5 are general in nature and in support of ground No.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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