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2016 (6) TMI 246 - ITAT CHENNAIRevision u/s 263 - treatment to sinking fund from the parties as capital or revenue receipt - Held that:- As in the assessment order there was no discussion whatsoever by the Assessing Officer on the issue relating to sinking fund. There is no application of mind or any enquiry by the Assessing Officer on this issue. Being so, in our opinion, the assumption of jurisdiction under section 263 of the Act is justified. Regarding the pleas of the assessee is that the sinking fund is a part of sale consideration of the property, in our opinion, this plea of the assessee is having no merit since it is an admitted fact the office space sold during the year was not actually owned by the assessee. The transaction has actually taken place between M/s. SCM Microsystems (India) P. Ltd. and M/s. Data Telesis Pvt. Ltd. Though the assessee is not involved in the sale of office space, still the sinking fund is collected by the assessee from the buyer. This does not a part of the sale consideration received by the assessee so as to be treated as capital receipt and to grant deduction under section 80-IA of the Act. Thus the transaction is in the nature of charging fees from owners for providing various types of services in the form of maintenance of various routine services and maintenance of the building, consequently, all within the ambit of trading activities, nothing to do with the consideration received by the assessee, if any. Further, there is a binding decision of the Bombay High Court (M. Visvesvaraya, Industrial Research and Development Centre v. CIT (2012 (11) TMI 235 - BOMBAY HIGH COURT) in which the Commissioner of Income-tax placed reliance so as to treat the impugned receipt as a revenue receipt, as such we do not find any infirmity in the order of the Commissioner of Income- tax. - Decided against assessee.
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