9911796707
TMI Blog2021 (3) TMI 849X X X X Extracts X X X X X X X X Extracts X X X X ..... this Court. 2.1 The appellant-revenue avers that the deletion ordered by the tribunal qua the addition made by the assessing officer vis-a-vis the security deposit amounting to Rs. 31,14,60,578/- is perverse. 3. To be noted, we are concerned, in the present appeal, with the assessment year 2005-2006. The tribunal in paragraph 40 of its order has observed as under: "With respect to the issue of taxability of the security deposit against the golf course membership fee of INR 3114605781-, the claim of the assessee is that such security deposit is returnable in nature. It is required to be refunded to the members at the end of the specified years or as per the terms of the membership. If the membership is refundable to the members, it beco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, the tribunal ought not to have reversed the decision of the assessing officer as well as the Commissioner of Income Tax (Appeals). 4.1 In support of his plea, Mr. Sharma relies upon paragraphs 3.4, 3.7 and 3.8 of the assessing officer's order dated 18.12.2007. 5. Having heard Mr. Sharma, we are of the view that no substantial question of law arises, for consideration by this Court, for the following reasons: 5.1 As would be evident from the extract of the impugned order passed by the tribunal, a finding of fact has been returned that the security deposit is refundable to the members of the assessee club. The tribunal has gone on to hold that the security deposits being refundable, it continues to be shown as liability in the boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osit and balance amount paid. ..... ..... ..... (Emphasis is mine) 5.3. Having regard to the provisions of Articles 2 and 3, which we have extracted hereinabove, it is clear that the security deposit is both interest free and refundable, which is required to be paid to the member, if she/he opts for its refund or ceases to be a member of the assessee club. 5.4. Given this finding of fact, to our minds, since the security deposit continues as a liability in the books of the assessee club, the assessing officer could not have added the same to the income of the assessee club. The tribunal has correctly, in our opinion, deleted the addition. 6. As indicated above, these are the findings of fact, which we are not inclin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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