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2020 (4) TMI 20 - AT - Income TaxDisallowance of Membership Fees paid to Cricket Club of India - Nature of expenditure - revenue or capital expenditure - HELD THAT:- In the present case, assessee has taken permanent membership of CCI Club and assessee is allowed to use the facility of the club and it can never create any capital assets. As the assessee can only utilize the facility and in case, he decides to surrender the membership, he will not get any refund. Therefore, assessee does not get any right by becoming a member. The fact that assessee utilizes the facilities for the purpose of his business and it is brought on record by the assessee that the business has increased after taking membership in the club. Considering the turnover, the membership fees is very negligible and it can never be treated as capital assets having enduring benefit. It may give benefit of utilizing the club facilities, but cannot create any right of endurance /right of possession. - Decided in favour of assessee.
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