Commissioner Of Income Tax-3 v. Bank Of America Securities

IN THE HIGH COURT OF JDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTIONINCOME TAX APPEAL NO. 3892 OF 2010 Commissioner of Income Tax-3 ..Appellant. Vs. Bank of America Securities (India) Pvt Ltd..Respondent. Mr. Vimal Gupta, for the Appellant. Mr. P.J.Pardiwala,Sr. Counsel with Vasanti B Patel for the respondent. CORAM : J.P. DEVADHAR AND A.A. SAYED, JJ. DATE : 7TH JULY, 2011. P.C. Heard. Two questions of law are raised by the revenue in this appeal which read thus:- 1. Whether on the facts and circumstances of the case and in law the Hon'ble Tribunal was justified in deleting the disallowance made by the Assessing Officer of Rs.30,00,000/- being payment made by the Assessee company as entrance fees for membership of Bombay Gymkhana?the Hon'ble Tribunal was justified in deleting the disallowance made by the Assessing Officer of Rs.30,00,000/- being payment made by the Assessee company as entrance fees for membership of Bombay Gymkhana? 2. Whether on the facts and circumstances of the case and in law the Hon'ble Tribunal was justified in holding that the entrance fees paid for membership of a recreation/sports club is revenue expenditure?the Hon'ble Tribunal was justified in holding that the entrance fees paid for membership of a recreation/sports club is revenue expenditure? The aforesaid questions are answered against the revenue by the decision of this court in the case of Otis Elevator Co.(India) Ltd Vs. Commissioner of Income Tax, Vol.195 ITR 682. In this view of the matter, the Appeal is dismissed. ( A.A. SAYED, J. ) (J.P. DEVADHAR, J.)