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2013 (6) TMI 552 - AT - Income TaxIncome from other sources - amount received for the permit room area - Held that:- It is a fact that the there are two amounts ie Rs 4.8 lakhs and Rs 2.4 lakhs received by the Club from the same contractor of course for specified uses of the facilities/premises of the club. It is admitted fact that the assessee originally offered general compensation of Rs. 2.4 lacs, which is now being claimed as exempt. Of course, the sum of Rs 4.8 lakhs is always claimed as exempt in the Return of income and the same is rejected by the AO/CIT(A). In any case, after admission of the additional ground, the basis of conclusion given in the impugned order becomes non existant and therefore, both the receipts ie Rs 4.8 lakhs and Rs 2.4 lakhs are open for fresh adjudication by the CIT(A). Now he has to adjudicate giving reasons as to how these receipts does not fall in the scope of the 'principles of mutuality'. He needs to adopt the judgment in the case of Bangalore Club (2013 (1) TMI 343 - SUPREME COURT) and make use of the guidelines set by the Apex court for determining the true nature of the impugned receipts under question. Therefore the issues relating to taxability of permit room compensation of Rs. 4.8 lacs as well as the general compensation of Rs. 2.4 lacs should be set aside to the files of the CIT (A) for fresh adjudication - appeal of the assessee is partly allowed for statistical purposes.
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