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TMI Blog2012 (10) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. Thus when the fee for the course was collected from students each as on the registration date, Contention of assessee that he had held the sums in trust which were actually due for the future is not tenable. Fees received has to be treated as Asset and not Income. As decided by Court in case of of [Vysyaraju Badreenarayana Moorthy Raju 1985 (3) TMI 2 - SUPREME COURT ] Receipts are to be treated as Asset as on the valuation date and are not be treated as Income – Appeal is allowed in favour of Revenue. - 1263 OF 2005 - - - Dated:- 12-6-2012 - Mrs. CHITRA VENKATARAMAN AND K. RAVICHANDRA BAABU, JJ. M.R. Senthil Kumar for the Appellant. M.P. Senthil Kumar for the Respondent. JUDGMENT Mrs. Chitra Venkataraman, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the Assessing Officer, the assessee filed an appeal before the Commissioner of Income Tax (Appeals). Following the earlier order, the Commissioner of Income Tax rejected the appeal. Aggrieved by that, the assessee went on further appeal before the Income Tax Appellate Tribunal and the Revenue had also filed appeal in respect of the portion of the relief granted to the assessee. 4. In so far as the claim on the inclusion of the advance fee received as part of the net wealth is concerned, the question arising in the revenue appeal, the Income Tax Appellate Tribunal referred to the assesse's own case under the Income Tax Act for the assessment years 1991-92 to 1997-98. The Income Tax Appellate Tribunal held that the advance tuit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the system of accounting and observed as follows: '6. ..... The system of accounting, mercantile or cash or hybrid, is of no relevance for the purpose of determining the assets of the assessee. The appears to be plain from the definition of 'net wealth' which speaks of 'the aggregate value... of all the assets' belonging to the assessee on the valuation date. All the assets of the assessee, barring those expressly excepted by the statute, are to be taken into account, and it is immaterial whether the assessee employs one system of accounting or another. There is clear indication that the assets to be considered are not circumscribed by any consideration of the particular system of accounting adopted by the assessee. The assets are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax Act learned Counsel submitted that the advance fee received should not be included in the asset of the assessee since the same is not treated as income in the year of receipt. In the said case the Tribunal had agreed with the contention of the assessee that the advance amount received could not be treated as income of the year under consideration. Further more, he pointed out that the Revenue had not gone on appeal against the order of the Tribunal for the earlier years for the Assessment Years starting from 1991-92 to 1997-98. 9. We do not find any justification on the said plea that the Revenue had accepted the order by not having filed any appeal effectively and hence the same concluded the issue. On going through the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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