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TMI Blog2016 (3) TMI 1065X X X X Extracts X X X X X X X X Extracts X X X X ..... ogether and are being disposed of by way of this consolidated order for the sake of convenience. 2. Firstly, I shall take up for adjudication of Assessee's appeal in ITA No.3301/Ahd/2015 for AY 2011-12:- In this appeal, mainly two issues are raised. The first issue involved in ground Nos.1 to 3 is relating to refundable security deposit collected by the assessee, whether it is Revenue Receipt or Capital Receipt. The assessee had received the refundable security deposit during the year amounting to Rs. 3,82,51,000/- which are to be repaid to its members after 25 years without interest. The AO while completing the assessment, held that 60% of the total security deposit is to be treated as income and added a sum of Rs. 2,29,50,600/- to the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilable on record and gone through the orders of the authorities below. The Revenue has not disputed that the security deposits were refundable to the Members. It is also not in dispute that in some of the cases the assessee-club has refunded the amount. Under these facts, we are unable to accept the finding of the AO that the amount would be subjected to income-tax and would partake the income of the assesseeclub. We are of the considered view that every receipt cannot be termed as income unless it is satisfies the requirement of law. In the present case, the assessee-club had received refundable non-interest bearing security deposit would remain liability for the assessee-club. Member by giving security deposit entitles himself for the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o.4 is with regard to confirmation of disallowance of Rs. 1,44,869/- made by AO invoking the provisions of section 14A of the Act. At the very outset, the ld.counsel for the assessee fairly conceded that the said issue is covered against the Assessee and in favour of Revenue in view of the Tribunal's order passed in assessee's own case for AY 2008-09(supra). 5.1. The ld.Sr.DR also supported the order of the ld.CIT(A) on this issue. 6. I have heard both the parties. Looking to totality of the facts and circumstances of the case and in view of the submission made by the ld.counsel for the assessee, I hold that the disallowance of Rs. 1,44,869/- by applying the provisions of section 14A of the I.T.Act, 1961 is justified and in accordance wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for this assessment year also. Therefore, ground Nos.1 to 3 are raised in the assessee's appeal are allowed. 11. Ground No.4 is with regard to confirmation of disallowance of Rs. 3,13,296/- made by AO applying provisions of section 14A of the I.T.Act, 1961. This ground is also identical to ground No.4 raised in assessee's appeal in ITA No.3301/Ahd/2015 for AY 2011-12(supra). My findings rendered in ITA No.3301/Ahd/2015 will hold good for this assessment year also. Thus, ground No.4 raised by the assessee is rejected. 12. Ground No.5 was not pressed by the ld.counsel for the assessee and, therefore, the same is dismissed as such. 13. Ground No.6 is with regard to initiation of penalty u/s.271(1)(c) of the I.T.Act,1961. This ground does n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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