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2015 (4) TMI 472 - AT - Income TaxTaxability of contributed to the conducting of events by way of sponsorship - principles of mutuality - no intention to earn income - contributing companies are nonmembers - Held that:- assessee has been organizing various events for the mutual benefit of its members. The contributions, if any, received from the members were utilized for conducting the events and the surplus, if any, is accepted as exempt under the principles of mutuality. The above said companies have partly sponsored the events, apparently as a part of their respective sales promotion activities. Hence, the objective of the assessee in receiving these contributions, in our view, can only be considered to be to meet part of the expenditure incurred in organizing the events. Hence, in our view, there is no intention to earn any income out of the above said contributions, since it only goes to reduce the expenditure. - contribution cannot be subjected to tax as income in the hands of the assessee. It is an accepted fact that the complimentary liquor has been sold at a price, meaning thereby the intention of the assessee was to make profit out of sale of complimentary liquors. Thus the action of the assessee was commercial in nature. It was not shown to that the liquor companies, who have given complimentary liquors, are members of the assessee. Hence, we do not find any infirmity in the decision of the ld.CIT(A) on this issues. Assessment of interest income - Held that:- Both the parties agreed that this issue has since been decided against the assessee by Hon'ble Supreme Court in the case of Bangalore Club reported in [2013 (1) TMI 343 - SUPREME COURT]. Accordingly, we set aside the order of Ld CIT(A) on this issue and confirm the assessment of interest income. - Decided partly in favour of Revenue.
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