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TMI Blog2024 (11) TMI 1369X X X X Extracts X X X X X X X X Extracts X X X X ..... nation petition which is as under: "Regarding first point that the (EF) appeal is time barred by 260 days as per Ld. CIT(A) order, I would like to inform that the jurisdictional Pr. CIT, i.e. Pr. Commissioner of Income Tax-5, Kolkata has certified that the said appellate order in Appeal No./DIN & Order No. ITBA/NFAC/S/250/2022-23/1048949643(1) dated 20.01.2023, in the case of Calcutta Swimming Club (PAN: AAAAT 2493 K) for the AY 2017-18 of Ld. CIT(A), NFAC, Delhi, was received in their office through e-mail on 09.11.2023 and directed the undersigned to file appeal under section 253 of the Income Tax Act, 1961 against the said order u/s 250 of the Act. Accordingly, the appeal no. ITA 1335/Kol/2023, AY 2017-18 was filed by the undersigned o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. The Ld. Sr. Dr. appeared on behalf of the department has challenged the impugned order, thereby submitting that the Ld. CIT(A) has erred in deleting the addition of Rs. 3,11,15,451/- made by the AO ignoring the reality that the facts and circumstances of the case go to show that the assessee has other sources of income apart from membership fee from hiring of club premises and fee from guests of members as recorded in the bye-laws which is beyond the purview of the principle of mutuality and a violation of it. 7. Contrary to that the Ld. A.R supports the impugned order of Ld. CIT(A). 8. Upon hearing the rival submissions of the Counsel of respective parties, the only points for determination are whether the case of the assessee is co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b Ltd. vs. Principal Commissioner of Income Tax, Kolkata. The Hon'ble Calcutta High Court has held as under: "Taxability of rent receipts-Assessment of club revenue- Whether taxable under the head "income from house property? -scope of principle of mutuality" - Held That:- A club is an association of persons for certain objects and purposes. The concept of mutuality is that whenever money is being spent by a particular member is also being enjoyed by that person in the form of facilities. Members or a group of persons forming the association and the association are seen as a single identity. One cannot make an income out of any sum paid to oneself or spent on oneself. In charging a member for such utility the club should not make any prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be paid or signed for at the time of introduction. The above clause clearly establish the fact that the club is not only limited to its member but also providing services to public and charging fees for it and thus comes into the ambit of business. Merely mentioning the word Principle of Mutuality cannot justify the claim of the assessee." 12. The learned CIT(A) has further given reason in Para 5.1 to 5.3 to arrive in conclusion that the activities are governed by the principle of mutuality. Going over the facts of the case, order passed by the Ld. CIT(A) and the judgment in this context, we do not find any merit in the submission of the Ld. D.R. It is clear that activities of the Assessee are covered by principle of mutuality. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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