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TMI Blog1976 (10) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... d 31st March, 1973. 2. The assessee is the well-known Cricket Club of India Ltd., Bombay and under s. 25 of the Companies Act, though it is a company, it is exempted from using the word "Limited" after its name. In the year under consideration, the 5th test match between England and India was staged at the well-known Brabourne Stadium attached to its club house. In its returns for the year under consideration, the assessee while returning the income earned by it from the said test match on the tickets sold to the public and admitted to watch that match under the head "income from business" had taken the stand that the realisation of tickets for that match sold to its members for their guests bringing in all to it a sum of Rs. 10,28,400 wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as urged that the entire gross amount of Rs. 10,28,400 was not taxable income of the assessee for the year under consideration. The Appellate Assistant Commissioner, while agreeing with the assessee that the sale proceeds from the guest tickets could not be brought to tax, it appeals contrary to what the Tribunal had held in its said earlier decision in the case of the assessee, had directed the Income tax Officer that as far as assessment year 1973-74 was concerned, he should consider the Schedule attached to the income and expenditure statement for the year ended 31st March, 1973. According to this schedule, the total realisation from cricket matches amounted to Rs.18,69,026. Again there was expenditure of Rs. 8,48,649 resulting in surplu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l income, have proceeded on the same lines as were canvassed before the Tribunal earlier in the case of the assessee decided on 17th June, 1974. The factual position in this year is also admittedly the same as in the earlier years. In the said earlier decision, the Tribunal has held as under:- " However, we agree with the assessee's learned counsel that there is no material to say that a part of the common expenses should be deducted from these receipts. It is not established by evidence that any extra staff was employed or any expenditure was incurred in attending to the guests. If it had been established that some extra expenditure of a direct nature was incurred merely to provide accommodation to the guests or to provide food to them, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned vacant. This gives actual gross receipts from Chambers, from which the actual service charges are deducted and actual gross rent receipts are arrived at. The annual letting value is thereafter arrived at after deducting therefrom the Municipal taxes. The appellant submits that in its case the method adopted by the appellant in computing the property income is most equitable and reasonable and the same has been accepted by the Department in the past. For the assessment under appeal from the gross chamber charges receivable of Rs. 3,43,589 an amount of Rs. 69,728 representing Chamber charges not received due to Chambers remaining vacant are deducted. The balance of Rs. 2,73,861 represents actual receipts on account of Chamber service char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ving Mills vs. Commissioner of Excess Profits Tax (3) and (3) Mazagaon Dock Ltd. vs. CIT (4) In this connection Mr.D'Souza had also drawn our attention to a letter written by the assessee dated 14th Nov, 1961 to the Income -tax Officer where it has been stated that the income from cricket in the shape of the test matches was taxable under s. 10 and not 9 of the Indian Income - tax Act, 1922. In reply, the point which Mr.N.A. Palkhiwala, the learned counsel for the assessee, had highlighted that a distinction has to be made between business clubs like The Royal Western India Turf Club Ltd. And social clubs like the assessee before us. In the former the principle of mutuality cannot apply. In the latter in so far as the receipts are such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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