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2017 (9) TMI 511 - AT - Income TaxAssessment of income - correct computation of income - treat 60% of advance membership fee received as income instead of entire advance membership as income treated by AO - Held that:- A reasonable and fair estimate under these circumstances has to be made based on reasonable scientific method keeping in view business matrix and model of the assessee after study of the by-laws, rules and regulations governing the assessees’ club , memorandum and articles of association, terms and conditions for the grant of membership , terms and conditions under which advance membership fee was received by the assessee, conditions for refund of membership fee, empirical experiences and a scientific working , which need to be carried out keeping in view peculiar business model and matrix of the assessee and also with respect of the assessees’ club. We are , therefore, inclined to set aside and restore the matter to the file of the AO for de-novo determination of the issue on merits in accordance with law to work out spread/rollover of advance membership fee collected for a period of 25 years spread over period of time based on reasonable scientific method keeping in view business matrix and model of the assessee worked out after study of the above parameters as cited by us and also of any other relevant parameter having impact and bearing on computation of correct income of the assessee chargeable to tax. Our decision is in consonance with the recent decision of the Hon’ble Supreme Court in the case of Seagram Distilleries Private Limited (now Pernod Ricard India Limited) v. CIT-III,(2016 (7) TMI 1235 - SUPREME COURT). Appeal of Revenue is allowed for statistical purposes
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