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2015 (11) TMI 1512 - AT - Income TaxAddition on account of membership fee income - whether so called security deposit was inextricably linked to grant of membership? - Held that:- In the present case, the assessee-club had received refundable non-interest bearing security deposit would remain liability for the assessee-club. Member by giving security deposit entitles himself for the concessional rate services provided by the assessee-club. The assessee would entitle for spreading over the non-refundable fee on accrual basis, undisputedly the one time security deposit is refundable. The Hon’ble Supreme Court in the case of Siddheshwar Sahakari Sakhar Karkhana Ltd. (2004 (9) TMI 6 - SUPREME Court ) has held that these deposits are akin to transaction of loan. They are clearly liable to be excluded from taxable income. Therefore, respectfully following the judgement of the Hon’ble Apex Court in the case of Siddheshwar Sahakari Sakhar Karkhana Ltd., we are of the considered view that the security deposits as received by the assessee-club cannot be subjected to tax - Decided in favour of assessee
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