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Informist, Tuesday, Sep 17, 2024

 

NEW DELHI – The Supreme Court today stayed a Delhi High Court order upholding the imposition of 29.2 mln rupees luxury tax on the Delhi Gymkhana Club by the commissioner (entertainment and luxury tax) for the years 2009-12 (Apr-Mar), under the Delhi Tax on Luxuries Act, 1996. The top court will hear the club's petition next after four weeks.

 

The Delhi Gymkhana Club had challenged the imposition of the luxury tax, saying it was a social club and an association of mutual benefit with its activities confined to members. But the high court in November rejected this argument and said that for the purpose of the tax, it would suffice for the assessee to be an establishment whose income or receipts were generated from the provision of a luxury.
 

If it were the club's contention that luxury tax could not be levied on the provision of such residential accommodation, it was incumbent upon the club to question the validity of the provisions of the Delhi Tax on Luxuries Act, the high court said. In the absence of such a challenge, and bearing in mind the prevailing statutory position, the high court said it could not hold in favour of the Delhi Gymkhana Club.  End

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

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