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2011 (3) TMI 890 - AT - Income TaxRevision u/s 263 - company offers Holiday Scheme to card members at a discounted/special price on account of advance Room Nights marketed through its agents - assessment order is passed prior to the date of final hearing on 15-5-2007 - Similarly, though the assessee claimed to have produced bills in respect of addition of fixed assets vide letter dated 26-04-2007, the Commissioner found that the claims are not corroborated by order sheet entries or the evidence on record - It is a fact that the details furnished by the assessee are voluminous and require sufficient time for examination. It is also true that certain details collected, contained vital aspect of assessments Regarding accounting of advance sale of room nights - The undisputed fact is that the assessee has collected an advance, under promise to make available to its customers, rooms in at any of its hotels/Clubs owned by it or by its subsidiary as well as owned by the other affiliated destinations - More than 99 per cent of the customers surrender the room nights which is not only the amount paid but which is inclusive of a premium over and above the collected value - The CIT's direction that the receipt should be treated as income and keeping silent about repayment being treated as expenditure, gives a distorted picture and such a direction cannot be upheld - Decided in favor of the assessee Regarding Holiday Membership Surrendered Value - The surrender value is nothing but the amount paid by the customer/member plus a certain amount which is in the form of a premium or compensation - When a member does not utilise room nights in any year, including the first year, he looses his right to certain quantity of room night and gets entitled to a certain amount of surrender value - Just collecting voluminous details and not perusing the same and completing the assessment in hurry by accepting the submission of the assessee at face value and without application of mind, is valid reason for invoking the powers under section 263 - Appeals are allowed in part
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