Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (5) TMI 361 - AT - Income TaxDepreciation on the golf course - Whether depreciation should be allowed considering it as ‘plant and machinery’ ? - HELD THAT:- As in assessee’s own case for Assessment Year 2005-06 to 2011-12 [2019 (9) TMI 148 - ITAT DELHI] wherein, the coordinate bench has held that the golf course is a plant and machinery and assessee is eligible for depreciation thereon @15% - Allow ground No. 1 of the appeal directing the ld AO to grant depreciation on cost of developing golf course on land considering it as plant and machinery. Addition on account of security deposit and membership fees - Revenue receipt or capital receipt - HELD THAT:- In Gulmohar Green Golf and country club Ltd [2016 (12) TMI 1559 - GUJARAT HIGH COURT] wherein it was been held that the security deposit recovered from the members at the time of their enrolment as a member is refundable on occurrence of the contingency mentioned in the rules and regulation and bylaws, therefore it is required to be treated as a deposit, thus, a capital receipt. Therefore, it was held that it is not an income of the assessee. As in the case of the assessee also the security deposit is refundable hence respectfully following the decision of GULMOHAR GREEN GOLF AND COUNTRY CLUB LTD.[2016 (12) TMI 1559 - GUJARAT HIGH COURT] we also hold that the sum of refundable security deposit received from the members of the assessee is a capital receipt and cannot be charged to tax as income. Accordingly, we direct the learned assessing officer to delete the addition to the extent of refundable deposit received from the members. Addition on account of security deposit and membership fees received.
|