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TMI Blog1986 (3) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... under which assessment was framed and for rest of the two years, i.e. 1980-81 and 1981-82, depreciation on matting and Linolum crockery and cuttlery, druggets and lines is raised. First of all, we deal with the first ground raised for asst. yr. 1978-79 which read as under: "The ld. ITO has erred in law and facts of the case by reopening the case and framing assessment under s. 147(b)." The ground is apparently not very happily worded, as it seems to be more repetition of the ground which seems to have been raised by the assessee before the AAC. Anyway, in short the ld. counsel for the assessee Shri O. N. Chanta submitted that once the assessment was framed for 1978-79 by the ITO in consolidated order dt. 30th Sept., 1978 which covere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issue. The Club permits Military officers, retired defence personals, civilians and units which are placed in Simla to be its members and actually the; are the members. Different fees are charged from different types of Members. Liquor and other things which are supplied to the members are also differently charged. There is no provision in the memorandum under which the Club has came into existence as to what would happen in case of its dissolution regarding the assets owned by the Club. For all these different facts for all the assessment years under consideration, the ITO denied the benefit of doctrine of mutuality to the Club and subjected the net income to tax. When the matter came before the AAC, he confirmed the same. 4. While ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers in respect of liquor and other supplies. Undoubtedly, there is no provision on as to what would happen to the Club assets in case of its winding up and in case, if it is presumed that in the absence of clause to that effect, it would be equally distributed, we are afraid it will be very damaging to the claim of the assessee regarding mutuality. In a case of this type, unless there was a provision specifically made in the memorandum that in case of winding up or dissolution of the Club, it will revert back to the Members in the very same percentage in which they subscribed, the assessee could not be entitled to the benefit of mutuality. We had occasion to deal with this issue of mutuality in our order in ITA Nos. 772 and as per principle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hink any discussion is required because once on the basis of doctrine of mutuality, which is as per judge-made law, benefit may not come to the assessee, it would fall on all those facets also and special because they are based on the undisputed facts of different subscriptions, different profit and no provision of reversion of assets on dissolution or winding up of the Club. 8. Now what survives for our consideration is the only ground regarding depreciation on matting and linolium, crockery and cutlery, druggets and linen. In this regard, the ld. counsel for the assessee himself submitted that as a matter of fact all these things should have been claimed as deduction on the basis of replacement but since that was not done, therefore, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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