Ita/60/2010 Of The Commissioner Of Income Tax v. Karnataka Golf Association

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATEKBD THIS THE DAY OF JANUARY 2O16 PRESENT THE HON’BLE MR.JUSTICE N K PATIL| AND THE HON’BLE MRS.JUSTICE S SUJATHA ITA NO.60/2010 BETWEEN 1.The Commissioner of Income-tax| C R Building| Queens Road Bangalore. oD The Deputy Director of Income-Tax Circle-177(1), C R Building| Queens Road Bangalore ..Appellants (By Sri K.V. Aravind, Advocate) AND Karnataka Golf AssociationNo.1, Golf AvenueKodihalli Opp. Airport RoadBangalore-560 O17 ....Responden (By Sri AShok A. Kulakarni, AdvocateFor M/s K.R.Prasad Advocates) This Income-tax appeal is filed under Section260-A of Income-tax Act 1961, to set aside the order|passedbytheITAT, Bangalore1nITA No.41/7/Bang/2009 and C.O. No.22/Bang/2009,dated 21.08.2009 confirming the order of the|Appellate Commissioner and confirm the _ ordepassed by the Deputy Director of Income Tax, Circle-17(1), Bangalore, in the interest of justice and equity. This appeal coming on for Hearing this day,N.K. Patil. J., delivered the following: JUDGMENT This appeal is by the revenue questioning thecorrectness of the order dated 21.08.2009 passed by theIncome.Tax|AppellateTribunal1nITA|No.417/Bang/2009—1nC.O.No.22/Bang/2009confirming the order of Appellate Commissioner and|confirm the order passed by the Deputy Director ofIncome Tax, Circle — 1/7(1), Bangalore raising thefollowing substantial questions of law for our|consideration: (1)Whether the Appellate Authorities|were correct in holding that the activity ofplaying golf and other activities likecatering income, membership fee, beingpromoted by the assessee to its membersis a charitable activity and entitled toexemption from tax even though theassessee’s activities is not quailable to thegeneral public?| (2)Whether the Appellate Authorities|were correct in holding that the entire income of the assessee including suchincomeearnedfrom.activitiesmade|available to non-members is also exemptfrom Income Tax? 2. We have heard learned counsel appearingfor the appellants and the learned counsel appearing|for the respondent.| 3. Both the counsel appearing for the parties at!the outset submit that the relief sought in this appealis squarely covered by a Division Bench Judgment ofthis Court inITA No.418/2008' disposed of on01.12.2010' filed by theCommissioner of IncomeTaxandAnotheragainstKarnatakaGolfAssociation (AOP). Therefore, they submit thatfollowing the said Judgment, the instant appeal may|also be disposed off, directing the Assessing Officer toconsider the entire matter as to whether the’exemptions claimed by assessee could be allowed or not with reference to Sections 11 and 13 of the’Income Tax Act? 4 ‘The submissions oft the learned counsel are.placed on record. Oo. The appeal filed by the appellants is allowed|in part following the Judgment of the Division Bench|of this Court dated 01.12.2010 passed in ITA|No.418/2008, without answering the substantial|questions of law and directing the Assessing Officer toconsider the entire matter afresh by examining as to|whether the exemptions claimed by assessee could beallowed or not with reference to Sections 11 and 13 ot|the Act. All contentions urged in this appeal are leitopen. Ordered accordingly. | brn Sd/-| JUDGE. Sd/-| JUDGE