Case Law Details
Cricket Club of India Pvt. Ltd. Vs CIT (ITAT Mumbai)
Held that activity of cricket by the club cannot be said to be in the nature of trade or business.
Facts-
The assessee club is incorporated under the Companies Act of 1913 and came into existence on 9.11.1933 as a company limited by guarantee, each member guaranteeing contribution of Re. 1 each towards debts and liabilities including expenses costs and charges in the event of the company being wound up. The assessee is claimed to be a ‘mutual concern’ income of which is not chargeable to tax on principles of mutuality. This claim has been accepted in the past by the revenue.
The ROI for the Asst Year 2010-11 was filed by the assessee on 15.10.2010 declaring a total income of Rs. 1,93,57,341/-. The assessment u/s. 143(3) was completed vide order dated 30.03.2013 assessing the total income at Rs. 5,98,30,570/-. During the assessment proceedings, the assessee has also submitted revised computation of total income of Rs. 5,71,00,430/- by offering interest income & capital gains to tax pursuant to decision of Hon’ble Supreme Court in Bangalore Club Vs CIT reported in 350 ITR 509 (SC).
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