9911796707
TMI Blog2017 (9) TMI 833X X X X Extracts X X X X X X X X Extracts X X X X ..... O (Exemption] erred in denying exemption U/s 11 & the Commissioner of Income Tax [Appeal] also erred in confirming the same denial a. By overlooking the fact that the registration of the Appellant us 12A was valid and subsisting and wrongly holding that the Appellant Trust was not having any primary objective of charitable nature and that its activities are commercial activities and not tbr charitable purpose and public at large u/s 2(15)rws 3(8]. b By erroneously holding that the most has not spent income on the object of me trust mid that the trust is set up mainly for the benefit of their members and thereby overlooking the fact that promotion of trade & commcerce is also qualifies u's 2(1) r w s 13[81 as charitable object and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count for the A.Y. 2011-12. The assessee has received the total receipts to the tune of Rs. 2,67,87,641/- under the various heads which is herby mentioned below.:- Particular Amount(Rs.) Interest income on saving and fixed deposit 60,88,905 Interest on Income tax refund 1,25,440 Income from club house activities 2,05,73,296 Total Amount 2,67,87,641 4. The assessee received the income from Club House Activities to the tune of Rs. 2,05,73,296/- as mentioned below.:- Particular Amount(Rs.) Receipt from Members and Guests 81,25,708 Fees from members & Guest 1,03,44,491 Compensation from caterers 16,98,000 Locker rent 60,300 Sundry receipts 3,44,797 Total Amount 2,05,73,296 5. The assessee claimed income as exempt u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 996-97, 1997-98 & 1998-99. but in the present year the claim of the assessee has wrongly denied therefore the finding of the CIT(A) is wrong and against the law and fact and is liable to be set aside. It is also argued that the present case is the case of the A.Y. 2011-12 while in the case of A.Y. 2010-11 the order has been passed u/s 143(3) in which the exemption u/s 11 of the Act has been granted to the assessee but declined in the present year as well as in an another year i.e., 2012-13 wrongly and illegally without differentiating the facts, therefore, in the said circumstances the claim of the exemption u/s 11 of the Act is liable to be allowed in the interest of justice. It is also argued that the same view has been taken by the Hon'b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. We noticed that the Assessing Officer has declined the claim of the assessee u/s 11 of the Act mainly on the basis of the exception of the Section 2(15) of the Act. We deemed it necessary to reproduce the clause 3 of the memorandum of association which explained the object of the assessee :- "(a) To take over the assets, properties and engagements of the present unregistered institution known as' The Andheri Recreation Club' (b) To provide, establish, endow, maintain, control and manage grounds, Schools, Colleges and other Educational Institutions and to do all acts and things necessary for or conducive to the promotion of Schools of the Montessori and Kindergarten types,Primary secondary, Higher, Commercial, technical and Industria ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) the aggregate receipts from such activity or activities during the previous year, do not exceed twenty per cent of the total receipts, of the trust or institution undertaking such activity or activities, of that previous year 9. On appraisal of the finding of the Assessing Officer, we noticed that the Assessing Officer observed that the income from club house activities to the tune of Rs. 2,05,73,296/- vide which the receipts were from member of guest, fees members of guest, compensation from caterers, locker rent, sundry receipts is the income which is not in nature of charitable purpose. Assessing Officer also was of the view that the expenses incurred on badminton, billiards, card room, lawn tennis swimming pool entertainment etc. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utta Cricket & Footbal Club Vs. Ito Exemption In ITA. Nos 466/Kol/2016 dated 05.08.2016 for A.Y. 2011-12 2. Navi Mumbai Gymkhana ITAT Mumbai ITA No. 196/Mum/2013 dated 21.05.2014 for A.Y. 2009-10. 3. Chembur Gymkhana Mumbai ITAT ITA Nos. 3033/Mum/2015 Dated 08.03.2017 for A.Y. 2010-11. 10. It is also came into notice that the revenue allowed the claim of the assessee in the earlier years and also allowed the claim of the assessee for the A.Y. 2010-11 u/s 143(3) of the I.T. Act, 1961.There is no factual change in the activity of assessee in the current year. Taking into account of all the facts and circumstances of the case, we are of the view that the claim of the assessee has wrongly declined, therefore, the finding of the CIT(A) i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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