CALCUTTA CLUB LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) Heard Learned Counsel appearing for the parties.

(2.) The petitioner has challenged the initiation of impugned reassessment proceeding under Section 147 and notices dated 26th March, 2014 under Section 148 of the Income Tax Act, 1961 relating to assessment years 2007-08 and 2008-09. The issue required to be adjudicated in this Writ Petition is about legality of the impugned proceeding initiated under Section 147 and notices under Section 148 of the Income Tax Act issued after expiry of four years from the end of the relevant assessment year on the basis of a subsequent decision of the Hon'ble Supreme Court reversing the legal position existing at the time of passing of the regular assessment under Section 143 (3) of the Income Tax Act , 1961, and in absence of specific allegation by the Assessing Officer against the assessee about the failure on the part of the assessee in disclosing fully and truly any material fact necessary for assessment as appears from the recorded reason for reopening of assessment under Section 147 of the Income Tax Act, 1961.

(3.) Facts in brief on perusal of relevant records available emerge hereunder. According to the petitioner it is a member's club and is registered as a company limited under the provisions of Section 25 of the Companies Act, 1956 and its objects are to provide its members all the useful privileges, advantages, conveniences and accommodation of a club and it is the case of the petitioner that no person other than a member or a guest accompanied by the member or his wife can use the facilities of the club and no outsider is permitted to use such facilities of the club. Each member of the club is a member of the company and each of the company is a member of the club and there is complete identity between the members of the club and the members of the company. It is the case of the petitioner that a member's club (not a proprietor club) was excluded from taxation on the principle of mutuality in the relevant assessment years 2007-08 and 2008-09.