DELHI HIGH COURT: DELHI GYMKHANA CLUB EXIGIBLE TO TAX UNDER DELHI TAX ON LUXURIES ACT, 1996

The Delhi High Court in the case Delhi Gymkhana Club Versus Commissioner, Luxury Tax, New Delhi and Ors observed and has held that the Delhi Gymkhana Club is exigible to tax under the Delhi Tax on Luxuries Act, 1996.

The bench comprising of Justice Yashwant Varma and Justice Ravinder Dudeja in the case observed and has stated that the Delhi Tax on Luxuries Act, 1996, as it stood during the assessment period in question, wherein it extended its application also to the provision of residential accommodation in a club and, if in any case, did not at the relevant time exclude the provisioning of accommodation to members of a club from the expression 'luxury' and the word 'luxury' did not even exist in the statute book which being prior to its insertion by virtue of the 2012 Amendment Act.

In the present case, the petitioner or assessee had challenged the validity of the order passed by the Commissioner, the Entertainment and Luxury Tax.

The court stated that the respondent or department, and which has in turn affirmed the orders of assessment made for Financial Years 2009-2010, 2010-2011, and 2011-2012, holding it to be exigible to tax under the Delhi Tax on Luxuries Act, 1996.