The Director Of Income Tax (Exemption v. M/S.otters Club

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2297 OF 2010 The Director of Income Tax (Exemption)..Appellant. Versus M/s.Otters Club ..Respondent. Mr.Suresh Kumar for the appellant.Mr.Atul K. Jasani for the respondent. CORAM : J.P. Devadhar & A.A. Sayed, JJ. P.C. : DATE : 4[th] August, 2011. 1.Two questions of law have been raised by the Revenue in this appeal, which reads thus : (a)Whether, on the facts and circumstances of the case and in law the Tribunal was right in directing the AO to allow exemption under Section 11 of the Income Tax Act, 1961 ignoring the fact that the income of the assessee is earned from the activities relating to providing food, liquor and facility for playing cards and other such games which do not qualify for deduction under the provisions of Section 11 of the Income Tax Act, 1961 ? (b)Whether, on the facts and circumstances of the case and in law, the Tribunal was right in ignoring the fact that the AO has violated the provisions of Section 13 of the Income Tax Act wherein undue benefit is endured on the persons specified under Section 13(1) of the Act and also such activities of the Trust are not incidental objects of the Trust and hence has not complied with the requirements of Section 11(4) of the Act ? 2.As regards question (b) is concerned, counsel for the parties state that this question does not arise out of the order of the Income Tax Appellate Tribunal. Hence, question (b) cannot be entertained. 3.As regards question (a) is concerned, the Income Tax Appellate Tribunal has followed its decision in the assessee’s own case for assessment years 1985-86, 1991-92 and 2001-02. There is nothing on record to show that the Revenue has filed appeals in those assessment years. Nothing is brought to our notice as to how the decision of the Income Tax Appellate Tribunal in those assessment years is contrary to law. 4.In this view of the matter, the appeal is dismissed with no order as to costs. (A.A. Sayed, J.) (J.P. Devadhar, J.)