9911796707
TMI Blog2024 (11) TMI 1369X X X X Extracts X X X X X X X X Extracts X X X X ..... own benefit. It is clear that activities of the Assessee are covered by principle of mutuality. Accordingly, the appeal of the department is hereby dismissed. - Shri Pradip Kumar Choubey, Judicial Member And Shri Rakesh Mishra, Accountant Member For the Appellant : Shri Miraj D Shah, A.R For the Respondent : Shri Pradip Biswas, Addl. CIT Sr. D.R ORDER PER PRADIP KUMAR CHOUBEY, JM: This is an appeal preferred by the revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A) ] dated 20.01.2023 for the AY 2017-18. 2. The appeal is time barred by 260 days. The Ld. Sr. Dr. appeared on behalf of the Department filed condonation petition which is as under: Regarding first poi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... response to the notices, filed a detailed submission and documents before the AO, and the AO after going through the documents and submissions made by the assessee added Rs. 12,10,620/- u/s 14A of the Act and also made an addition of Rs. 3,11,15,451/- u/s 69C read with Section 115BBE of the Act. 5. The said order has been challenged by the assessee before the Ld. CIT(A) wherein the appeal of the assessee has been partly allowed as the addition of Rs. 3,11,15,451/- made by the AO have been deleted but he confirmed the addition of Rs. 12,10,620/- u/s 14A of the Act. Being aggrieved and dissatisfied with the impugned order, the department/revenue have preferred the instant appeal. 6. The Ld. Sr. Dr. appeared on behalf of the department has cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deemed to be members of the club thereby meaning that the permanent members are those who have a right to elect the executive committee of the club, They are those who provide their personal guarantee with regards to the debts and liabilities of the club. 3. That the service provided to the club can be exclusively to the said categories of the members of the club and is not open for outside usage. 5. That the club and members of the club are not distinct entity. 6. The permanent members of the club are mutual to the club. 10. We have also gone through the judgement cited by the assessee reported in [2023] 7 TMI 466 (Cal-HC) passed in the case of The Saturday Club Ltd. vs. Principal Commissioner of Income Tax, Kolkata. The Hon ble Calcutta H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b premises may only arranged through a club member provided approval of General Committee is forthcoming and on the understanding that the member accepts all liabilities for payments of bills resulting from said hiring. From the above clause of the Rules and Bye-laws of the club that the same is validly doing hiring activity to non-members and charging fees for it and cannot claim it to be a non-business activity. Point No. 9 of Rules and Bye-laws: Member introducing guests (other than person eligible for admission under Rule 28(b) in to the club shall be charged a guest fee which will be fixed by the committee from time to time. The fee is to be paid or signed for at the time of introduction. The above clause clearly establish the fact tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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