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2021 (1) TMI 677 - AT - Income TaxAssessment of Club as an association of person - principles of mutuality and taxation of revenue generated from non-voting associate members - assessee has claimed that the entrance fee collected from non-members is exempt from taxation - As per revenue entrance fees collected from members having no voting rights will be under the head income from business - claim of the assessee that the assessee company is an association of persons coming together for the benefit of all the participants because of which the activities falls under the principle of mutuality and therefore the surplus if any earned by the company is not chargeable to tax - HELD THAT:- As relying on CIT v. Willingdon Sports Club [2008 (3) TMI 134 - BOMBAY HIGH COURT] in which the judgement of the Hon’ble Supreme Court in the case of Chelmsford Club v. CIT [2000 (3) TMI 4 - SUPREME COURT] has been applied and referred the decision in the case of CIT v. Bankipur Club Ltd. [1997 (5) TMI 392 - SUPREME COURT]. Thus, respectfully following the above judgements of the Hon’ble Supreme Court, we set aside the orders of authorities below and direct the Assessing Officer to delete the addition made in both the assessment years. Addition under the head income from other sources being surplus income over expenditure as well as interest income - HELD THAT:- Respectfully following the above decision of the Hon’ble Supreme Court in the case of Bangalore Club v. CIT [2013 (1) TMI 343 - SUPREME COURT] we dismiss the ground raised by the assessee towards the claim of exemption towards surplus income over expenditure as well as interest income for the assessment year 2013-14 as well as claim of loss being the expenditure over income under the head income from other sources for the assessment year 2015-16.
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