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TMI Blog2017 (7) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount received in earlier years was assessable to tax as the deposit had changed its character into income?" 3] The learned counsel for the Assessee submits that the Assessee was running the educational institution known as "National School of Banking". The institution was imparting training and preparing the students for competitive exams conducted by banks for recruitment. In this venture the Assessee had a scheme that the students who could not pass the banking recruitment exam, 50% of the fees will be refunded to them within two months from the declaration of the result of the examination. The amount which was refundable under the scheme was credited to the Guarantee Liability Account in the Balancesheet in the year 1989-90. Such lia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wered in favour of the Assessee. 6] The learned counsel for the Respondent submits that under the scheme itself the Assessee had made it clear that 50% refund ought to be claimed within two months, failing which the right shall be forfeited. The subsequent circular as alleged by the Assessee was never advertised nor published nor there is any date on the circular. The Tribunal has purportedly considered the said aspect. The learned counsel relying on the judgment of the Apex Court in a case of Commissioner of Income Tax vs. T.V. Sundaram Iyengar and Sons Ltd, reported in (1999) ITR 236 page 524, submits that deposit receipts from customers which were not claimed by them, the claim of the customers having become barred by limitation, the am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he part of creditor will not enable the debtor to say that liability has come to an end. It was further observed by the Apex Court that the cessation of the liability may occur either by reason of the operation of law, i.e., on the liability becoming unenforceable at law by the creditor and the debtor declaring unequivocally his intention not to honour his liability when payment is demanded by the creditor, or a contract between the parties or by discharge of the debt the debtor making payment thereof to his creditor. Mere transfer of an entry is neither an agreement between the parties nor payment of the liability. The Apex Court accepted the finding of the Tribunal that unilateral entry in the accounts transferring the amount to the capit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not claimed within the stipulated time and if any amount was decided to be refunded to the students that would not alter the character of the receipt. The admissibility of deduction in respect of the refund granted by the assessee, out of the money which had become that of the assessee by operation of the contract, is totally a different area, with which we are not concerned at this stage. This claim of the assessee is accordingly rejected." 12] Perusing the aforesaid finding, the Tribunal has considered the contract between the parties i.e. after lapse of two months, the right of students to claim the amount coming to an end. The second circular was disbelieved by the Tribunal. The said finding is a findings of fact, which cannot be gone ..... X X X X Extracts X X X X X X X X Extracts X X X X
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