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TMI Blog2016 (6) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... rd to invoking the jurisdiction under section 263 of the Act so as to hold that sinking fund deposit received by the assessee from the parties as revenue receipt. In these assessment years, the assessee received a sum of Rs. 8,60,040 (assessment year 2010-11) from M/s. Data Telesis Pvt. Ltd., and a sum of Rs. 2,58,254 (assessment year 2011-12) from M/s. Technosoft Global Services (P.) Ltd. The Assessing Officer made no deduction to these receipts in his assessment orders. Hence, the Commissioner of Income-tax invoked the provisions of section 263 of the Act so as to give direction to the Assessing Officer to consider this receipt as revenue receipt and re-frame the assessment. Against this the assessee is in appeal before us. 3. Before us, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raya, Industrial Research and Development Centre v. CIT reported in [2012] 26 taxmann.com 200 (Bom), dated October 25, 2012. 5. 5.1 We have heard both the parties and perused the material on record. In this case, the assessee collected the sinking fund from the parties and treated as capital receipt. According to the Commissioner of Income-tax, the receipt from sinking fund from the parties is a revenue receipt in view of the judgment of the Bombay High Court in the case of M. Visvesvaraya, Industrial Research and Development Centre v. CIT [2012] 26 taxmann.com 200 (Bom) wherein held that : "(a) The mere use of the term 'sinking fund' and the manner in which the assessee treats the same in its accounts is not decisive of the matt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other hand the learned authorised representative relied in the case of Alpha Services v. Deputy CIT (ITA No. 1063/Del/2011) wherein held that fund collected by the assessee from the flat owners and/or tenants for replacement of capital assets and capital repair which was considered and treated as capital receipt in the accounts by the assessee since its inception, and the same was also accepted by the Department in earlier years, cannot be treated as capital receipt when there is no change in facts or law during the current assessment year. 5.3 Further, the learned authorised representative submitted that even if it is considered as a revenue receipt, the sinking fund collection is part of the sale consideration of property and thereby the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 reported in [2012] 26 tax mann.com 200 (Bom)) 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. Both the orders of the Commissioner of Income-tax for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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