TMI Blog2002 (9) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... eceipt, without properly appreciating the facts of the case that assessee himself has shown 10 years membership receipt as revenue receipt. "That the ld. CIT(A) erred in holding the amount of Rs. 2,72,000 the life membership fee as capital receipt without appreciating the fact that the nature of the subscriptions whether it is current year subscriptions or 10 years subscription or Life membership subscriptions, is the same as revenue receipts. That the ld. CIT(A) has erred in law and on facts in relying upon the preceding assessment year and not considering that each assessment year is a separate unit of assessment, and also that there is no res-judicata in the IT assessment proceedings. That the ld. CIT(A) while deleting the said add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the magazine is being brought out for the last 40 years and life membership is being received for the last 15 years. The Assessing Officer has also found that during these last 15 years no refund was given to any of the subscribers and there is no written agreement with the subscribers regarding refund of the amount. 2.2 The CIT(A) deleted the addition of Rs. 2,72,000 on the ground that the Assessing Officer was not justified in assessing this amount as revenue receipts during the year under consideration in view of the fact that evidence placed before him that the amount was refundable to the subscribers and was being utilized by the assessee for his business purposes and the magazine was being supplied on account of interest whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that in preceding assessment year, the amount of life membership was treated as capital receipts. But simultaneously, we are of the view that principle of res-judicata does not apply in the proceedings under the Income-tax Act. We further noted that the CIT(A) accepted the submission of the assessee that the amount received towards life membership stands invested by the assessee in FDRs as also in the business and the interest earned on such subscription is sufficient for supplying the magazine to the life members. The CIT(A) did not make any attempt to work out the average expenditure of magazine supplied to life members to arrive at the conclusion whether the interest accrued on paltry sum of Rs. 150 was sufficient to meet the expenses at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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