IN THE ITAT MUMBAI
Bombay Presidency Golf Club Ltd.
V/s.
Director of Income-tax (Exemptions)
IT Appeal No. 319 (Mum.) of 2012
[Assessment Year 2009-10]
MAY 30, 2012
ORDER
Amit Shukla, Judicial Member
This appeal has been filed by the assessee against the order dated 08-12-2011 passed by the Director of Income Tax (Exemption), Mumbai u/s 12AA(3) cancelling the registration granted u/s 12AA.
2. The assessee is a Club which has been granted registration u/s 12AA with effect from 01-04-2001 on the following objects :
1. To provide a golf course at or near mazagaon sewri, reclamation in the city of Bombay and or elsewhere in the presidency of Bombay, and to lay out and prepare any such course for playing the game of golf and other purposes of the club, and to provide pavilions, lavatories, refreshment rooms and other conveniences in connection therewith, and with a view there to in particular to take on lease or otherwise acquire from the trustee of the port of Bombay vacant land at mazagaon sewri reclamation aforesaid at such rent, for such period and upon such terms and conditions as may seen expedient.
2. To afford to the members of the club all the usual privileges, advantages, conveniences and accommodation of a club.
3. To promote all forms of athletic sports and pastimes.
4. To buy, repair, make, supply, sell and deal in all kinds of apparatus and appliances used in connection with sports, and all kinds of provisions and refreshments required for use by the members of the club or other persons for the time being entitled to use the club buildings or premises of the club.
5. To promote and hold either alone or jointly with any other associations, club or person, sports meeting, competitions and matches and to give, or contribute towards prizes, medals and awards and to promote give or support dinners, balls, concerts and other entertainments.
6. To establish, promote, or assist in establishing or promoting, and to subscribe to or become a member of any other association or club whose objects are similar, or in part similar to the objects of the Club, or the establishment or promotion of which may be beneficial to the club. Provided that no subscription be paid to any such other association or club out the funds of the club except bonafide in furtherance of the objects of the club.
7. To purchase, take on lease, or hire or otherwise acquire any moveable or immovable property, or any rights or privileges necessary or convenient for the purpose of the Club.
8. To construct or alter or keep in repair any buildings required for the club, and to pull down or demolish any buildings not so required.
9. To hire and employ secretaries, clerks, managers, servants and workmen and pay them and other persons in return for services rendered to the club, salaries, wages, gratuities and pensions.
10. To invest the money of the club not immediately required. In such securities as may from time to time be determined, including any debenture, bonds or other securities issued by the club.
11. To borrow or to raise money which may be required for the purpose of the club upon bonds debentures, bills of exchange, promissory notes, or other obligations, or securities of the club, or by mortgage or change of the club property.
12. To sell, improve, manage, develop, lease mortgage, dispose of or otherwise deal with, all or any part of the property of the club, whether moveable or immovable, with power, especially to sell and distribute wine, spirits, tobacco and other stores among the members, for consumption inside the permanent or any temporary premises of the club.
13. Generally, to do all such other things, as are
Since then the assessee has been given benefit for exemption u/s 11 by the Department.
3. From the facts borne out from the impugned order, it is seen that a proposal for cancellation of registration was sent from the ITO(E)I(1), Mumbai to the DIT(E) on the ground that the assessee has been carrying on activities in the nature of trade, commerce, business etc. and is hit by the proviso to section 2(15), applicable from assessment year 2009-10. Accordingly, a show cause notice dated 31-10-2011 was issued to the assessee for cancellation of registration u/s 12AA(3). The learned DIT(E), from the details of income and expenditure account, noted the following receipts which were in the nature of commerce or trade during the assessment year 2009-10:
