1999 PLP 3537 (PTD)
COMMISSIONER OF INCOME-TAX Versus NATIONAL SPORTS CLUB OF INDIA (N0.2)
| Citation | 1999 PLP 3537 (PTD) |
| Forum / Court | 230 I T R 780 |
| Bench Members | R. C. Lahoti and J. K. Mehra, JJ |
| Parties | COMMISSIONER OF INCOME-TAX Versus NATIONAL SPORTS CLUB OF INDIA (N0.2) |
| Primary Law | (a) Income-tax, (b) Income-tax |
Q1: What are the key laws and sections cited in 1999 PLP 3537 (PTD)?
This judgment primarily cites: (a) Income-tax, (b) Income-tax as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 1999 PLP 3537 (PTD)?
The case was heard and decided by the 230 I T R 780 bench comprising: R. C. Lahoti and J. K. Mehra, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 1999 PLP 3537 (PTD) (COMMISSIONER OF INCOME-TAX Versus NATIONAL SPORTS CLUB OF INDIA (N0.2)). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Headnotes / Summary
Rent receipts from members to whom rooms were let out by assessee-club alongwith other facilities
Not taxable as income.
Business income or income from property
Income from swimming pool and stadium
No element of rent involved for use of swimming pool and stadium by members and outsiders
Income therefrom is to be assessed as "income from business" and not as "income from house property". . Held, that the rent receipts from members to whom rooms were let out by the assessee-club, which was a mutual concern alongwith other facilities was not taxable as income. CIT v. Bankipur Club Ltd. (1997) 226 ITR 97 (SC) and CIT v. ,National Sports Club of India (No. 1) (1997) 230 ITR 777 (Delhi) fol. Held also, that the income derived by the assessee club, a mutual concern, from swimming pool and stadium was to be assessed as "income from business" and not as "income from house property". R.D. Jolly and Premlata Barisal for the Commissioner. S.K. Aggarwal and Vinay Vaish for the Assessee. "
Judgment & Decree
R.C. LAHOTI, J.
This is a reference under section 256(1) of the Income Tax Act, 1961, at the instance of the Revenue arising out of the assessment years 1976-77 and 1977-78, respectively, seeking the opinion of the High Court on the following two questions of law (for each of the two years): "(1) Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the rent receipts from the members to whom the rooms were let out by the assessee-club alongwith other facilities were not assessable to income-tax on the doctrine of mutuality? (2) Whether, on the facts and in the circumstances of the case, the Tribunal, is correct in law in holding that the income from swimming pool and stadium should be taxed under the head 'Business' and not under the head 'Income from house property'?" We have heard and disposed of I.T.R. Nos.282-283 of 1979 (CIT v. National Sports Club of India (1997) 230 ITR 777) between the same parties raising similar questions though for different assessment years. Consistently with the view taken therein, these references are disposed of by answering the two questions as stated hereinafter. Consistently with the view taken by us following the law laid down by the Supreme Court in the case CIT v. Bankipur Club Ltd. (1997) 226 ITR 97, question No. 1 is answered in the affirmative, i.e., in favour of the assessee and against the Revenue. As regards question No.2, it is not clear from the order of the Tribunal if the swimming pool and the stadium were let out as properties to outsiders, i.e., other than the members. The Tribunal was, therefore, right in holding that the income from the swimming pool and the stadium at Bombay was rightly taxed under the head "income from business" and not under the head "income from house property". The question is answered accordingly, i.e., in favour of the assessee and against the Revenue. No order as to costs. One copy each of this order shall be placed on the record of the two cases of these references. M.B.A./3132/FC???????????????????????????????????????????????????????????????????????????????? Reference answered.