TMI Blog2003 (4) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... ) deleting the addition of Rs. 4,08,950 made by the Assessing Officer on account of non-refundable entrance fees received by the assessee?" - we answer both the questions in the affirmative, i.e., in favour of the assessee and against the Department. - - - - - Dated:- 17-4-2003 - Judge(s) : S. H. KAPADIA., J. P. DEVADHAR. JUDGMENT The judgment of the court was delivered by S.H. KAPADIA J.-During the accounting year ending March 31, 1987, relevant to the assessment year 1987-88, the assessee had let out a portion of its commercial premises in Bombay and Hyderabad to Diners Club India Limited (sister concern) for which the assessee received non-interest bearing security deposit of Rs. 48,51,000 for the Bombay property and Rs. 4,50,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons referred to us for our opinion. They are as follows: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in confirming the order of the Commissioner of Income-tax (Appeals) deleting the addition of Rs. 20,19,921 made by the Assessing Officer under section 28(iv) of the Income-tax Act, 1961, in respect of non-interest bearing deposits received by the assessee from letting out its premises at Mumbai and Hyderabad to its sister concern? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in confirming the order of the Commissioner of Income-tax (Appeals) deleting the addition of Rs. 4,08,950 made by the Assessing Officer on account of non-refundable en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an addition of Rs. 13,55,425. In this case, the basic issue is whether the Assessing Officer was justified in estimating 60 per cent. of the amount of the lesser rent/charges received by the assessee as the value of the benefit accruing to the assessee under section 28(iv) of the Act and, consequently, whether the Assessing Officer was justified in adding back Rs. 13,55,425 to the income of the assessee. In our view, there is no substantial ground of appeal raised by the Department. The Commissioner (Appeals) found that the Assessing Officer has proceeded on the basis of the difference between the rent charged by the assessee to Diners Club India Limited and what the Assessing Officer considered to be the market rent. The Commissioner (Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng has been confirmed by the Tribunal. This finding is a finding of fact. We do not see any reason to interfere with this finding. Accordingly, we answer question No. 1 in the affirmative, i.e., in favour of the assessee and against the Department. As stated above, the Assessing Officer made an addition of Rs. 4,08,950 to the income of the assessee on account of non-refundable entrance fees received by the assessee. The Commissioner (Appeals) found that the entrance fees were charged by the assessee for enrolment of its customers as members of the "executive centre". The entrance fees were a one-time fee and only members were eligible to avail of the facilities available in the "executive centre". The Commissioner (Appeals) found that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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