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2019 (3) TMI 1307 - KERALA HIGH COURTAddition to income of the amounts deposited by the franchisees who have been supplied with freezers for storing the assessee's products - deposit made is the value of the freezers - as submitted that in all the above cases the demand is less than ₹ 50 lakhs and hence the continuance of the appeals as per the present litigation policy cannot be allowed - HELD THAT:- In so far as supplying brand new freezers to the franchisees on a deposit of the price; taken from these franchisees. Every year there was a depreciation made on the value and the depreciated amounts offered as income in that particular year. If the franchisee discontinued the franchise then the balance written down value available as per the books of accounts are refunded to the franchisees. Hence, it is submitted that the income is returned in phases and there is no warrant for the addition made in the year in which the franchisee agreement is entered into, since it does not inure to the assesses as income. The learned counsel for the respondent asserts that even on merits he has a good case. However, in the circumstance of Revenue having sought for withdrawal of almost all the cases, we are of the opinion that even the two cases in which instructions have not been received are to be rejected following the litigation policy as introduced by the Central Government. There are other appeals in the batch in which the demand is far greater but all less than ₹ 50,00,000/-. We reject the appeals based on the litigation policy, leaving open the question of law raised.
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