Team Blitz India
NEW DELHI: The Delhi High Court upheld the imposition of Rs 2.92 crore luxury tax on Delhi Gymkhana Club by the city government in 2014. The High Curt rejected the plea by the club challenging the demand raised under the Delhi Tax on Luxuries Act.
“Accordingly, while we uphold the impugned order and negative the challenge raised, we only observe that the decision of the Commissioner (Entertainment and Luxury Tax) assailed before us shall not be liable to be treated as a precedent for any assessment period post the promulgation of the 2012 Amendment Act, ” the High Court said.
In July 2014 when the plea was filed, the High Court had asked the club to pay Rs 1.45 crore, out of total Rs 2.92 crore for three accounting years – 2009-10, 2010-11 and 2011-12 – as luxury tax to the city government.
The court had asked the club to make part payment of the tax due to the government as a pre-condition to hear its plea that it cannot be levied as the club serves to members only.
It had also asked the Delhi Government to lift the attachment order passed against the club and issued notices to the Excise, Entertainment and Luxury Tax Department.