Delhi HC upholds over Rs 2 Cr tax demand imposed on Gymkhana Club

New Delhi, Nov 17: The Delhi High Court has affirmed the imposition of Rs 2.92 crore luxury tax on the Delhi Gymkhana Club by the city government in 2014.

Rejecting the club’s challenge against the demand raised under the Delhi Tax on Luxuries Act, a bench of Justices Yashwant Varma and Ravinder Dudeja stated that the decision should not be considered a precedent for assessments post the 2012 Amendment Act. The high court had initially directed the club to pay Rs 1.45 crore for the accounting years 2009-10, 2010-11, and 2011-12 as a pre-condition.

The court’s judgement followed a petition by the club asserting that the tax demand was unjust and made without proper hearing.

The club, maintaining its status as a social club governed by the principle of “mutuality,” argued against being treated as a hotelier subject to luxury tax on amounts collected from members for accommodation.

Source

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