Tax Management India. Com
                            Law and Practice: A Digital eBook ...
TMI - Tax Management India. Com
Case Laws Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Manuals News SMS Articles Highlights
        Home        
 
Extracts
Home List
← Previous Next →

M/s. Cricket Club of India Pvt. Limited Versus ACIT-1 (1) , Mumbai

2017 (10) TMI 246 - ITAT MUMBAI

Taxability of catering revenue - Held that:- Identical issue was considered by the co-ordinate bench in the assessee’s own case relating to AY 2007-08 wherein deleted this addition as held that the amount retained by the assessee from the bills raised by the caterers would not be taxable under the principles of mutuality, since the said receipt cannot be considered as amount received from outsiders. The Co-ordinate bench observed that the assessee has received money from its members and paid to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on. - Interest income earned by the assessee from UTI and GOI tax free bonds - Held that:- It is well settled proposition that the AO is not entitled to assess an income, which is otherwise exempt under the Act, since the AO is required to determine the total income in accordance with the law. Since the assessee claims that the above said interest income of ₹ 51.69 lakhs would be exempt u/s. 10(15) of the Act, we are of the view that the same requires examination at the end of the Asse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l return of income and it has resulted in double taxation of same income - Held that:- Since double taxation of same income is not permitted under the Act, we are of the view that this claim of the assessee also requires verification at the end of the AO. Accordingly we restore this issue to the file of the Assessing Officer. - Determination of annual value of the property - Held that:- Identical addition has been made by the Assessing Officer in A.Y. 2006-07. However, the Tribunal has resto .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the assessee as part of municipal tax - Held that:- As in assessee's own case for AY 2008-09 the assessee is in need of water to maintain the ground and other collateral purposes and accordingly, concluded that the expenditure incurred on water charges is necessary one and allowable under the provisions of section 23(1) of the Act. Since a particular view has already been taken by the co-ordinate bench on this issue, consistent with the view so taken, we set aside the order passed by Ld CIT(A) o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

B.R. Baskaran (AM) :- The appeal filed by the assessee is directed against the order dated 28- 08-2014 passed by Ld CIT(A)-1, Mumbai and it relates to the assessment year 2009-10. 2. The assessee is a company registered u/s 25 of the Companies Act as non-profit organization and is also registered as a charitable institution u/s 12A of the Act. The assessee claimed certain income as exempt under the principles of mutuality. The assessing officer completed the assessment by making various addition .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ubmitted that identical claim was made by the assessee before Ld CIT(A) in AY 2007-08 and the Ld CIT(A) has restored the matter to the file of the AO, vide its order dated 18-03- 2011 passed in Appeal No.CIT(A)-1/IT/619/09-10. Accordingly he prayed that this issue may be restored to the file of the AO with similar directions. 5. We heard Ld D.R and also perused the order passed by Ld CIT(A) in AY 2007-08 (supra). We notice that, in paragraph 5.4 of the order, the Ld CIT(A) has restored the matte .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s. The assessee had claimed exemption of its catering revenue under the principles of mutuality. The assessee treated the above said amount of ₹ 10,62,005/- as part of its catering revenue. The AO accepted the claim of the assessee with regard to other catering revenue, but took the view that the share of revenue received from outside caterers cannot be exempted under the principles of mutuality, since it has received the amount as a direct payment. Accordingly the AO assessed the above sa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

terers would not be taxable under the principles of mutuality, since the said receipt cannot be considered as amount received from outsiders. The Co-ordinate bench observed that the assessee has received money from its members and paid to the caterers at a lower rate by retaining its share and hence it cannot be said that the transaction involves non-members. In the instant case also, we notice that the facts are almost identical. The outside caterer has given assessee s share by way of direct p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

51.69 lakhs was earned from Unit Trust of India and Government of India Tax Free Bonds. He submitted that the Assessing Officer had assessed the entire amount of interest income, by holding that principles of mutuality would not apply to the same. The learned CIT(A) also confirmed the order passed by the AO on this issue. The Learned AR submitted that the above said interest income of ₹ 51.69 lakhs would be exempt u/s. 10(15) of the Act and hence the tax authorities are not justified in a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

at the end of the Assessing Officer. Accordingly, we set aside the order passed by the learned CIT(A) on this issue and restore the same to the file of the Assessing Officer with the direction to examine the claim for exemption u/s. 10(15) of the Act and take appropriate decision in accordance with law. 10. Ground No. 4 relates to addition of interest income of ₹ 233.03 lakhs. The claim of the assessee is that it has been added by the Assessing Officer without taking notice of the fact tha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Accordingly we restore this issue to the file of the Assessing Officer. 11. Ground No. 5.1(a) relates to determination of annual value of the property. The Assessing Officer made addition of 10% to the annual value reported by the assessee while computing income under the head income from house property and the same was confirmed by the learned CIT(A). 12. Learned AR submitted that the identical addition has been made by the Assessing Officer in A.Y. 2006-07. However, the Tribunal has restored .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

has restored the identical matter to the file of the Assessing Officer in A.Y. 2006-07. Accordingly, consistent with the view taken by the Tribunal in A.Y. 2006-07, we set aside the order passed by the learned CIT(A) on this issue and restore the same to the file of the Assessing Officer with similar directions given by the Tribunal. 14. Ground No. 5.1(b) relates to disallowance of payment of water charges made to BMC claimed by the assessee as part of municipal tax. The AO, by following his pre .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ncy as explained in the case of CIT Vs. Dalmia Promoters Developers Pvt. Ltd. (281 ITR 346). The Tribunal noticed the fact that the assessee is in need of water to maintain the ground and other collateral purposes and accordingly, concluded that the expenditure incurred on water charges is necessary one and allowable under the provisions of section 23(1) of the Act. Since a particular view has already been taken by the co-ordinate bench on this issue, consistent with the view so taken, we set as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er passed for A.Ys. 2006-07, 2007-08 & 2008-09. He submitted that the claim of the assessee is that it did not incur any expenditure in relation to earning exempt income and hence no disallowance u/s 14A is called for. 17. We heard learned Departmental Representative and perused the record. Since the Coordinate Benches have restored this matter to the file of the Assessing Officer in A.Y. 2006-07 & 2008-09, consistent with the view taken therein, we set aside the order passed by the lear .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e view taken by the Coordinate Bench, we uphold the order passed by the learned CIT(A) on this issue. 19. Next issue urged in ground No. 5.1(d)(ii) relates to claim for MAT credit of ₹ 109.11 lakhs u/s. 115JAA. Learned AR submitted that the assessee paid a sum of ₹ 109.11 lakhs u/s. 115JB in A.Y. 2008-09 and it is eligible for credit u/s. 115JAA of the Act. Since the Tribunal has confirmed the applicability of provisions of sec. 115JB, the Ld A.R submitted that the assessee cannot be .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

enue expenditure claimed by the assessee as capital expenditure. The Learned AR submitted that the Assessing Officer had incurred expenses for hosting ICC Champions Trophy 2006 to the tune of ₹ 185.31 lakhs in A.Y. 2007-08 and claimed the same as revenue expenditure. However the AO disallowed the above said claim by treating the same as capital in nature. However he allowed depreciation thereon at the rate of 10%. The Ld A.R submitted that the order passed by the Assessing Officer in AY 20 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that the assessee has not claimed the same in the return of income. 22. We heard Ld D.R on this issue and are of the view that the prayer of the assessee is consequential in nature and has to be considered by the Assessing Officer in accordance with law. Accordingly we restore this issue to the file of the AO with the direction to decide the same after the receipt of order of Hon ble High Court. 23. In ground No. 6.1 & 6.2, the assessee is challenging decision of the learned CIT(A) in enhanc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sought an adjournment on 27.8.2014. However the adjournment request was rejected by the learned CIT(A). Thereafter, the assessee filed a detailed written submissions, vide its letter dated 5.9.2014, in reply to the notice issue by Ld CIT(A). However, it was not considered by the learned CIT(A) and accordingly the Ld CIT(A) passed the order enhancing the income of the assessee by rejecting the claim for exemption under the principles of mutuality. The Ld A.R submitted that the income generated f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.