DCIT, Bhubaneswar v. M/s. Bhubaneswar Club Limited, Bhubaneswar

ITA 228/CTK/2015 | 2010-2011
Pronouncement Date: 20-10-2016 | Result: Dismissed

Appeal Details

RSA Number 22822114 RSA 2015
Assessee PAN AABCB3582C
Bench Cuttack
Appeal Number ITA 228/CTK/2015
Duration Of Justice 1 year(s) 5 month(s) 12 day(s)
Appellant DCIT, Bhubaneswar
Respondent M/s. Bhubaneswar Club Limited, Bhubaneswar
Appeal Type Income Tax Appeal
Pronouncement Date 20-10-2016
Appeal Filed By Department
Order Result Dismissed
Bench Allotted SMC
Tribunal Order Date 20-10-2016
Assessment Year 2010-2011
Appeal Filed On 08-05-2015
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH CUTTACK BEFORE SHRI N. S SAINI ACCOUNTANT MEMBER ITA NO.228 /CTK/2015 ASSESSMENT YEAR : 2010 - 2011 DCIT CORPORATE CIRCLE - 1(1) BHUBANESWAR. VS. BHUBANESWAR CLUB LTD. UNIT - VI RAJPATH BHUBANESWAR. PAN NO.AABCB 3582 C (APPELLANT ) .. ( RESPONDENT ) C.O.NO.34/CTK/2015 (ARISING OUT OF ITA NO.228 /CTK/2015 ) ASSESSMENT YEAR : 2010 - 2011 BHUBANESWAR CLUB LTD. UNIT - VI RAJPATH BHUBANESWAR. PAN NO.AABCB 3582 C. VS. DCIT CORPORATE CIRCLE - 1(1) BHUBANESWAR. (CROSS OBJECTOR) .. ( RESPONDENT ) ASSESSEE BY : SHRI G.N.NAIK/R.K.KAR REVENUE BY : SHRI SUVENDU DUTTA DR DATE OF HEARING : 20 /10 / 2016 DATE OF PRONOUNCEMENT : 20 /10 / 2016 2 ITA NO.228/CTK/2015 C.O.NO.34/CTK/2015 ASSESSMENT YEAR :2010 - 2011 O R D E R THIS I S AN APPEAL FILED BY THE REVENUE AND CROSS OBJECTION FILED BY THE ASSESSEE AGAI NST THE ORDER OF CIT(A) - BHUBANESWAR DATED 10.2.2015 FOR THE ASSESSMENT YEAR 2010 - 2011 . 2. THE SOLE ISSUE INVOLVED IN THE APPEAL OF THE REVENUE IS THAT THE LD CIT(A) WAS NOT JUS TIFIED IN DELETING THE FOLLOWING ADDITIONS: I) NET SURPLUS MONEY : RS.10 48 322/ - II) OTHER REVENUE RECEIPTS `: RS. 9 04 575/ - III) NET RECEIPTS FROM OTHER MEMBERS: RS. 4 22 983/ TOTAL: RS.23 76 480/ - 3. BRIEF FACTS OF THIS CASE ARE THAT THE ASSESSING OFFICER NOTED THE DECISION OF THE LD CIT(A) AND THE TRIBUNAL IN THE CASE OF THE ASSESSEE FOR EARLIER ASSESSMENT YEARS WHEREIN THE CLAIM OF MUTUALITY WAS PARTLY ALLOWED. THE ASSESSING OFFICER DID NOT FOLLOW THE SAID DECISION AS THE REVENUE WAS IN APPEAL BEFORE THE HONBLE ODISHA HIGH COURT AGAINST THE ORDER OF THE TRIBUNAL. THEREFORE THE AO ADDED NET SURPLUS AS PER NET REVENUE ACCOUNT OF RS.10 48 322/ - OTHER REVENUE RECEIPTS OF RS.9 04 575/ - AND NET RECEIPTS FROM OTHER MEMBERS OF RS.4 22 983/ - TO THE INCOME OF THE ASSESSEE. 3 ITA NO.228/CTK/2015 C.O.NO.34/CTK/2015 ASSESSMENT YEAR :2010 - 2011 4. ON APPEAL LD CIT (A) HELD AS UNDER: 4. I HAVE CONSIDERED THE RELEVANT DETAILS AND SUBMISSIONS OF APPELLANT. THE MATTER RELATING TO THE APPELLANT CLUB CAME TO BE EXAMINED BY ITAT IN ITS ORDER DT.31.7.2009 FOR THE AYS 1998 - 99 TO 2003 - 04 IN ITA NOS 70 90 92 93 & 94/CTK/2008 AND 3 7 38 39 40 & 41/CTK/2008 BEING CROSS APPEALS F BY THE REVENUE AND THE APPELLANT. THE CIT(A) - I VIDE HIS CONSOLIDATED OR DT.31.12.2007 IN ITA NOS.0114 TO 0118/06 - 07 FOR AYS 1999 - 00 TO 2003 - 04 VF UPHOLDING THE PRINCIPLE OF MUTUALITY ON THE BASIS OF THE O RDER OF ITAT FOR AY 19 98 CONSIDERED THAT THE PRINCIPLE OF MUTUALITY WOULD NOT APPLY TO THE FOLLOW RECEIPTS. THE PARAS 28 TO 30' OF HIS ORDER ARE EXTRACTED AS UNDER : '28. HOWEVER IT HAS TO BE MENTIONED HERE THAT IN RESPECT OF AY 1997 - 9 8 THE FOLLOWING HEADS OF ACCOUNTS WERE NOT REFLECTED IN THE STATEMENTS A CCOUNT OF THE APPELLANT CLUB. I) T - SHIRT AND TIE ACCOUNT II) COMMUNICATION CENTRE ACCOUNT II I) RENT FROM AIM COUNTER IV) ADVERTISEMENT COLLECTION ( GL OWSIGN) V) AEROBIC COLLECTION VI) ADVERTISEMENT COLLECTION FOR MEMBERS' DIRECTORY VII) DIRECTORY COLLECTION VIII) RENT FROM BEAUTY PARLOUR IX) REIMBURSEMENT OF ELECTRICITY CHARGES AND X) COMPUTER CENTRE COLLECTION ALSO NO RECEIPT/PROFIT/LOSS UNDER THE ABOVE HEADS WAS RETURNED BY THE AP PELLANT IN THAT YEAR. OBVIOUSLY THEREFORE THE HON'BLE TRIBUNAL HAD NO OCCASION TO EXAMINE THE NATURE OF THESE RECEIPTS AND THE SOURCE OF SUCH RECEIPTS OR TO DECIDE UPON THE TAXABILITY OF SUCH RECEIPTS OR TO GIVE A FINDING ON THE CORRECTNESS OR OTHERWISE OF THE SYSTEM OF ACCOUNTING FOLLOWED IN RESPECT OF SUCH RECEIPTS. 29. HENCE RESPECTFULLY FOLLOWING THE ORDER OF THE HON'BLE TRIBUNAL IN THE APPELLANT'S OWN CASE FOR AY 1997 - 98 THE AO IS DIRECTED TO TREAT THE APPELLANT CLUB AS NOT LIABLE TO BE TAXED ON THE GROUND OF MUTUALITY ON ITS ' INCOMES/RECEIPTS UNDER VARIOUS HEADS OF ACCOUNT SHOWN IN THE RETURN / STATEMENTS OF ACCOUNTS BY THE APPELLANT IN VARIOUS YEARS UNDER APPEAL EXCEPT THE HEADS OF ACCOUNT LISTED IN PARA 28 ABOVE AND ALSO EXCEPT FOR I NTEREST INCOME EARNED ON DEPOSITS MADE IN THE BANKS (EMPHASIS SUPPLIED) 29.1 AS FAR AS THE RECEIPTS/PROFITS DURING THE YEARS UNDER APPEAL AS LISTED IN PARA 28 ABOVE ARE CONCERNED THE DECISION OF THE HON'BLE TRIBUNAL IS NOT 4 ITA NO.228/CTK/2015 C.O.NO.34/CTK/2015 ASSESSMENT YEAR :2010 - 2011 AVAILABLE EN TAXABILITY OF SUCH RECEIPTS UNDER THESE HEADS. THEREFORE THE AO HAS TO EXAMINE MINUTELY THE NATURE OF SUCH RECEIPTS AND SOURCE OF THESE RECEIPTS WHILE GIVING EFFECT TO THIS ORDER. IN CASE SUCH RECEIPTS ARE FROM THE MEMBERS IN RESPECT OF WHOM THE DOCTRINE OF MUTUALITY APPLIES PROFIT/INCOME ARISING FROM SUCH RECEIPTS IS TO BE TREATED AS EXEMPT AND THE CLAIM OF THE APPELLANT IS TO BE ALLOWED. HOWEVER HE IS DIRECTED TO BRING TO TAX PROPORTIONATE PROFIT/INCOME IF ANY ARISING OUT OF SUCH RECE IPTS FROM NON - MEMBERS IN WHO S E CASES THE PRINCIPLE OF MUTUALITY IS NOT APPLICABLE. IN ANY CASE OPPORTUNITY OF BEING HEARD MUST BE ALL OWED TO THE APPELLANT IN THIS REGARD. THE ASSESSMENT ORDERS NEED TO BE MODIFIED ACCORDINGLY. 30. THE AO IS FURTHER DIRECTED TO TREAT THE INC OME EARNED AS INTEREST FROM DEPOSITS ETC. FROM BANK IN EACH OF THE FIVE ASSESSMENT YEARS UNDER APPEAL AS ASSESSABLE TO TAX AND MODIFY HIS ORDER ACCORDINGLY'. THE CIT(A) ALSO EXAMINED MATTER RELATING TO TEMPORARY MEMBERS AND HELD THAT THE PRINCIPLE OF MUT UALITY CANNOT HAVE ANY APPLICATION TO THEM RELYING ON THE DECISION OF THE PATNA HIGH COURT IN THE CASE OF RANCHI CLUB 196 ITR 137. HON'BLE CUTTACK BENCH OF ITAT IN THEIR CONSOLIDATED ORDER FOR AYS 1998 - 99 TO 2003 - 04 (REFERRED TO ABOVE) MADE OBSERVATIONS A S UNDER: (I) CIT(A) HAS FOLLOWED TRIBUNAL'S ORDER IN AS MUCH AS HE HAS UPHELD THE ASSESSEE'S CLAIM OF MUTUALITY SO THAT NEITHER THE GENERAL RECEIPTS FROM ITS MEMBERS NOR ENTRANCE FEE MUTUAL BENEFIT FUND DEVELOPMENT FUND WOULD BE CONSIDERED AS TAXABLE I NCOME. SIMILARLY THE RECEIPTS IN RESPECT OF VARIOUS SERVICES SUCH AS BAR KITCHEN ETC. ARE NOT LIABLE TO TAX. (PARA 3.1) II) IN REGARD TO VARIOUS HEADS OF ACCOUNT WHICH HAS BEEN SET ASIDE FOR EXAMINATION IN TERMS OF PRINCIPLE OF MUTUALITY IT HAS BEEN HELD THAT 'HE MATTER IN RESPECT OF VARIOUS OTHER HEADS OF ACCO UNT REFLECTION IN THE ASSE SSEE'S ACCOUNTS FOR THE REFERENCE YEAR (AY 1997 - 98) TO THE FILE OF THE A SSESSING OFFICER (A.O.) FOR BEING EXAMINED WITH REGARD TO THEIR TAXABILITY IN LIGHT OF THE DECISION OF THE TRIBUN AL. THAT BEING THE CASE WE FIND NO INFIRMITY IN T HE SAID DIRECTION AND THUS MERIT IN THE ASSESSEE'S CHALLENGE TO THE SAME; THE ID. CIT(A) IN FACT ONLY REQUIRING THE A.O. TO FOLLOW TH E ORDER OF THE TRIBUNAL FOR THE AY 1997 - 98 I.E. IN PRINCIPLE/RATIO'. (PARA 5.2) III) IN REGARD TO THE ISSUE OF TEMPORARY MEMBERS THE TRIBUNAL HAS UPPHELD THE DIRECTION OF THE CIT(A) TO THE AO TO EXAMINE THE SAME ON MERITS AND IN ACCORDANCE WITH LAW AS THE ISSUES WERE NOT BEFORE THE TRIBUNAL WHOSE DECISION IS BEING FOLLOWED. 'THE ISSUE OF 'TEMPORARY' MEMBERS WAS NEITHER BEFORE NOR CONSEQUENTLY CONSIDERED BY THE TRIBUNAL. THE ONLY IMPLICATION OF THE SET ASIDE OF THIS ISSUE BY THE ID. CIT(A) TO THE A.O. FOR HIS CONSIDERATION IS OF HIS CONSIDERING THE SAME TO BE PRIMA FACIE ON A DIFFERENT FOOTING THAN THE CASE OF THE REGULAR 5 ITA NO.228/CTK/2015 C.O.NO.34/CTK/2015 ASSESSMENT YEAR :2010 - 2011 MEMBERS; HE HAVING REFRAINED FROM EXAMINING THE ISSUE ON MERITS AND THUS FROM ISSUING ANY FINDINGS IN THE MATTER. HOW COULD THE S AME BE INFIRM THE ISSUE HAVING NOT BEEN WAS NOT CONSIDERED BY THE - TRIBUNAL BEING NOT BEFORE IT AND THUS CANNOT BE SAID TO BE COVERED BY ITS ORDER UNDER REFERENCE. THE CASE OF THE TEMPORARY MEMBERS FOR BEING CONSIDERED AT PAR WITH THE REGULAR MEMBERS SO THAT EVEN RECEIPTS THERE - FROM WOULD QUALIFY FOR TAX EXEMPTION ON THE GROUND OF MUTUALITY AS IN THE CASE WITH REGULAR MEMBERS AS IMPLIED BY THE CHALLENGE THERETO WOULD REQUIRE AN EXAMINATION OF THE TERMS AND CONDITIONS OF THE MEMBERSHIP; IN FACT TH E DIFFERENT TYPES/CATEGORIES THEREOF WITH REFERENCE TO THE CONSTITUTING CHARTER OF THE CLUB AND THE RIGHTS AND OBLIGATIONS ATTACHED THEREWITH VIS - A - VIS THE REGULAR MEMBERS. THE REGULAR MEMBERSHIP CONFERS SEVERAL RI GHTS VIZ. VOTING RIGHTS RIGHT TO THE C ORPUS ETC. AND A CASE OF CONSIDERATION FOR TEMPORARY MEMBERSHIP AT PAR THEREWITH WOULD REQUIRE SPELLING OUT THE SAME FOR THE DIFFERENT CATEGORIES OF MEMBERS; THE PARAMETERS OF MUTUALITY HAVING BEEN CLEARLY LAID OUT BY THE HON'BLE APEX COURT. AS - APPARENT THE ISSUE HAS BOTH FACTUAL AS WELL AS LEGAL ASPECTS INCIDENTAL TO IT AND WOULD REQUIRE DETERMINATION. CLEARLY THERE IS NO CASE FOR IMPUTING OR INFERRING A CASE OF PARITY WITH THE REGULAR MEMBERS EVEN PRIMA FACIE FROM THE ORDER OF THE TRIBUNAL SO THAT AS AFORESAID NO INFIRMITY ATTENDS THE CONCOMITANT AND THE IMPUGNED DIRECTION BY THE ID. CIT(A)'. (PARA 5.3) . IV) IN REGARD TO INTEREST ON DEPOSITS AND INVESTMENTS WITH BANKS AND OTHER INSTITUTIONS WHICH WAS CONSIDERED AS FORMING PART OF TAXABLE INCOME OF THE ASSESSEE BY THE CIT(A) THE TRIBUNAL HAS OBSERVED THAT WE DO NOT FIND AGAIN ANY INFIRMITY THEREWITH. THE ORDER OF THE TRIBUNAL IS SILENT ON THE ISSUE WHICH ONLY CONCERNS THE ISSUE OF TAXABILITY OF RECEIPTS FROM THE MEMBERS; THE SCOPE OF THE TER M 'MEMBERS'; AND THE REJECTION OF ITS ACCOUNTS BY THE A. O. EVEN OTHERWISE THE SAID DIRECTION IS IN CONSONANCE WITH THE LAW AS EXPLAINED BY THE HIGHER COURTS OF LAW AS IN THE CASE OF CIT V. BANGALORE CLUB 287ITR 263 (KARN.) AND RAJPATH CLUB LTD. V. CIT 211 ITR 379 (GUJ ) REFERENCE TO WHICH STANDS ALSO MADE IN HIS ORDER. THE REFERENCE TO THE CASE OF DI T (EXEMPTIONS) V. ALL INDIA ORIENTAL BANK OF COMMERCE WELFARE SOCIETY 184 CTR (DEL.) 274 BY THE ASSESSEE (PER ITS WRITTEN SUBMISSIONS) IN THIS REGARD IS C LEARLY INAPPOSITE INASMUCH AS THE ISSUE IN THAT CASE CONCERNED INTEREST ON CONTRIBUTION/DEPOSITS HELD BY THE MEMBERS OF THE ASSESSEE - SOCIETY WHICH STOOD DECIDED ON THE BASIS OF THE PRINCIPLE OF MUTUALITY WHICH IS BY DEFINITION ABSENT IN THE CASE OF NO N - MEMBERS THE PAYEES OF INTEREST IN THE PRESENT CASE'. (PARA 5.4) 4.1 THE FINDINGS AND DIRECTIONS OF THE TRIBUNAL ARISING OUT OF THEIR ORDERS FOR THE AY 1997 - 98 AND CONSOLIDATED FOR AYS 1998 - 99 TO 2003 - 04 CAN BE SUMMARIZED AS UNDER: 6 ITA NO.228/CTK/2015 C.O.NO.34/CTK/2015 ASSESSMENT YEAR :2010 - 2011 I) THE PRINCIPLE OF MUTUALITY IS APPLICABLE TO THE APPELLANT CLUB. (II) THE CONCEPT OF 'MEMBER' IS SPACIOUS ENOUGH TO INCLUDE GUESTS AND R ELATIVES OF THE MEMBERS AND MEMBERS OF AFFILIATED CLUBS. (III) THE CLUB HAS PROPERLY MAINTAINED BOOKS OF ACCOUNT S AND NO SERIOUS DEFECTS HAVE BEEN POINTED OUT IN THE MAINTENANCE OF BOOKS OF ACCOUNTS. THERE MAY BE LAPSES HERE AND THERE BUT THERE WAS NO SUCH SERIOUS DEFECT WHICH MAY LEAD TO REJECTION OF BOOKS OF ACCOUNTS. (IV) THE APPELLANT CLUB BEING A MUTUAL CONCER N NEITHER THE GENERAL RECEIPTS FROM ITS MEMBERS NOR ENTRANCE FEE MUTUAL BENEFIT FUND DEVELOPMENT FUND WOULD BE CONSIDERED AS TAXABLE INCOME. SIMILARLY THE RECEIPTS IN RESPECT OF VARIOUS SERVICES SUCH AS BAR KITCHEN ETC. ARE NOT LIABLE TO TAX. (V) HO WEVER INTEREST ON DEPOSITS AND INVESTMENTS WITH BANKS AND OTHER INSTITUTIONS WILL FORM PART OF TAXABLE INCOME. (VI) VARIOUS RECEIPTS IDENTIFIED IN PARA 28 OF THE ORDER BY CIT(A) SUCH AS RENT FROM ATM COUNTER BEAUTY PARLOUR ETC. ARE REQUIRED TO BE EXAMINED IF THE PRINCIPLE OF MUTUALITY IS APPLICABLE TO THEM. (VII) IN REGARD TO TEMPORARY MEMBERS THERE IS NO CASE FOR IMPUTING OR INFERRING A CASE OF PARITY WITH REGULAR MEMBERS. THE ISSUE EQUIRES DETERMINATION BY EXAMINING THE TERMS AND CONDITIONS OF MEMBERSHIP WITH REFERENCE TO CONSTITUTING CHARTER OF CLUB AND THE RIGHTS AND OBLIGATIONS ATTACHED THEREWITH VIS - A - VIS REGULAR MEMBER. 4.2 THE AO HAS CONSIDERED THAT THE MUTUALITY PRINCIPLE DOES NOT APPLY TO THE APPELLANT. HOWEVER TO A LA RGE EXTENT HIS COMPUTATION OF TOTAL INCOME IS IN ACCORDANCE WITH THE DIRECTIONS OF THE CIT(A) FOR THE EARLIER ASSESSMENT YEARS WHEREIN THE PRINCIPLE OF MUTUALITY HAS BEEN UPHELD. THE AO HAS ALSO OBSERVED THAT THE DEPARTMENT HAS NOT ACCEPTED THE PRINCIPLE O F MUTUALITY IN THE CASE OF THE APPELLANT SINCE APPEAL HAS BEEN FILED IN THE HIGH COURT. THUS THE AO HAS TAKEN CONTRADICTORY STANDS. IN AN Y CASE THE MATTER H AS BEEN DULY CONSIDERED BY THE TRIBUNAL IN THE CASE OF THE APPELLANT IN THE EARLIER YEARS. THE R E I S NO CHANGE IN THE ATTENDANT FACTS IN THE YEAR UNDER APPEAL. THEREFORE I HAVE TO NECESSARILY FOLLOW THE ORDERS OF THE TRIBUNAL FOR THE EARLIER YEARS. THEREFORE RELYING UPON THE SAID DECISIONS OF THE ITAT IT IS HELD THAT THE APPELLANT CLUB IS A MUTUAL CONCERN. THE CONCEPT OF 'MEMBER' WILL INCLUDE GUESTS AND RELATIVES OF THE MEMBERS AND MEMBERS OF THE AFFILIATED CLUBS PRINCIPLE OF MUTUALITY WILL BE APPLICABLE TO THE G ENERAL RECEIPTS FROM ITS MEMBER ENTRANCE FEE MUTU AL BENEFIT FUND AND DEVELOPMENT FUND AND THEY WOULD NOT BE CONSIDERED AS TAXABLE INCOME. SIMILARLY THE RECEIPTS IN RESPECT OF VARIOUS SERVICES SUCH AS BAR KITCHEN ETC. WILL NOT BE LIABLE TO TAX. SINCE THE CONCEPT OF MUTUALITY IS APPLICABLE TO THE 7 ITA NO.228/CTK/2015 C.O.NO.34/CTK/2015 ASSESSMENT YEAR :2010 - 2011 APPELL ANT TO SOME RECEIPTS AND THE AO HAS TAXED INDIVIDUAL RECEIPTS WHERE MUTUALITY IS NOT APPLICABLE THE AO IS NOT CORRECT TO ASSESS THE NET SURPLUS OF RS.10 48 322/ - WHICH AMOUNTS TO DOUBLE ADDITION. THE ADDITION OF RS.10 48 322/ - IS DIRECTED TO BE DELETED. 4.2.1. 4.2.2 THE APPELLANT HAS SUBMITTED DETA ILS OF RECEIPTS CONSIDERED BY THE AO AS TAXABLE. IT APPEARS FROM THE DETAILS FILED THAT THE OTHER RECEIPTS OF RS.1 47 9 14 IS ENTIRELY FROM MEMBERS OF THE APPELLANT CLUB HENCE THE AO IS DIRECTED TO DELETE THE SAME IF HE FINDS THAT SAME IS RECEIVED FROM MEMBERS OF THE APPELLANT CLUB. THE APPELLANT ALSO SUBMITS THAT OTHER RECEIPTS ASSESSE D BY THE AO RELATE TO MEMBERS OF THE APPELLANT CLUB AT LEAST TO A LARGE EXTENT. THE AO IS DIRECTED TO EXAMINE SUCH RECEI PTS AND TO THE EXTENT SUCH RECEIPTS RELATE TO THE MEMBERS OF THE CLUB THEY WILL BE EXEMPT THE AMOUNTS OF RECEIPT IN RESPECT OF NON - MEMBERS AND TEMPORARY MEMBERS WILL BE TAXABLE. THE AMOUNTS RECEIVED WHICH ARE IN THE NATURE OF COMMERCIAL TRANSACTION ARE ALSO TAXABLE EVEN IF RECEIVED FROM MEMBERS WHICH ARE NOT BASED ON MUTUALITY PRINCIPLE BUT A NORMAL COMMERCIAL TRANSACTION. THE ISSUE OF PARITY OF TEMPORARY MEMBERS WITH PERMANENT MEMBERS HAS BEEN DISCUSSED BY THE TRIBUNAL AT PARA 5.3 OF THEIR CONSOLIDATED ORDER DT.31.7.2009 WHERE THEY UPHELD THE RESTORATION OF THE MATTER BY THE CIT(A) TO EXAMINE THE MATTER LOOKING INTO THE TERMS AND CONDITIONS OF THE MEMBERSHIP WITH REFERENCE TO THE CONSTITUTING CHARTER OF THE CLUB AND RIGHTS & OBLIGATIONS ATTACHED THEREWIT H VIS - A - VIS THE PERMANENT MEMBERS. THE AO IS DIRECTED TO CARRY OUT SIMILAR EXERCISE FOR THE YEAR UNDER APPEAL BEFORE ALLOWING OR DENYING THE BENEFIT OF MUTUALITY TO THE INCOME ARISING OUT OF TRANSACTIONS WITH THEM. 5 . LD D.R. OF THE ASSESSEE SUBMITTED THAT ALL ISSUES IN THE REVENUES APPEAL ARE COVERED BY THE ORDER DATED 29.8.2006 OF THE TRIBUNAL IN ASSESSMENT YEAR 1997 - 98 IN ITA NO.125(CTK)2000 AND ITA NO.117(CTK) 2000 AND ORDER OF THE TRIBUNAL DATED 18.8.2016 IN IT A NO.222/CTK/2014 AND ITA NO.254/CTK /2014 FOR THE ASSESSMENT YEAR 2009 - 2010. HE SUBMITTED THAT THE REVENUE HAS FILED PRESENT APPEAL BEFORE THE TRIBUNAL IN ORDER TO KEEP THE ISSUE ALIVE AS THE DEPARTMENT HAS NOT ACCEPTED THE ORDER OF THE TRIBUNAL IN EARLIER YEARS. 8 ITA NO.228/CTK/2015 C.O.NO.34/CTK/2015 ASSESSMENT YEAR :2010 - 2011 6 . IN VIEW OF ABOVE SUBMISS IONS OF LD D.R. AS NO MISTAKE IN THE ORDER OF THE LD CIT(A) COULD BE POINTED OUT I FIND NO REASON TO INTERFERE WITH THE ORDER OF THE LD CIT(A) WHICH IS HEREBY CONFIRMED AND GROUNDS OF APPEAL RAIS ED BY THE REVENUE ARE REJECTED. 7 . AT THE TIME OF HEARING LD A.R. OF THE ASSESSEE SUBMITTED THAT HE IS NOT PRESSING CROSS OBJECTION FILED BY THE ASSESSEE AND ALSO MADE AN ENDORSEMENT TO THIS EFFECT IN FORM NO.36A FILED BEFORE THE TRIBUNAL. THEREFORE THE CROSS OBJECTION IS DISMISSED AS NOT PRESSED. 8 . IN THE R ESULT APPEAL FILED BY THE REVENUE AND CROSS OBJECTION FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCE D IN THE OPEN COURT ON 20 /10 /2016 IN THE PRESENCE OF PARTIES. SD/ - ( N. S SAINI ) A CCOUNTANT MEMBER CUTTACK; DATED 20 /10 /2016 9 ITA NO.228/CTK/2015 C.O.NO.34/CTK/2015 ASSESSMENT YEAR :2010 - 2011 B.K.PARIDA SPS COPY OF THE ORDER FORWARDED TO : BY ORDER ASST.REGISTRAR ITAT CUTTACK 1. THE APPELLANT : DCIT CORPORATE CIRCLE - 1(1) BHUBANESWAR 2. THE RESPONDENT. /CROSS OBJECTOR: BHUBANESWAR CLUB LTD. UNIT - VI RAJPATH BHUBANESWAR 3. THE CIT(A) BHUBANESWAR. 4. CIT BHUBANESWAR 5. DR ITAT CUTTACK 6. GUARD FILE. //TRUE COPY//