Sri Mritunjaya Sharma vs The Commissioner Of Income Tax,Agra on 30 April, 2012
The decision relied upon by the learned senior counsel for the assessee given in the CIT Vs. Mantra Tantra Yantra Vigyan (supra) has hardly any application to the facts of the present case. There the assessee was also publishing a monthly journal on Astrology and was having huge numbers of subscribers. Rs.1500/- was received according to the Revenue by way of subscription for life members, which sum was shown in the balance sheet as liability. The Assessing Officer found that only a sum of Rs.3,000/- had been refunded while a huge sum remained with the assessee. It was held that the receipt of subscription from the life members was not taxable at the hands of the assessee as it was security/Dharohar. The finding of fact was returned that the amount given by the life members was in the nature of security. The said case was decided on its own fact. There a finding of fact was returned by the Tribunal that the receipt was in the nature of deposit by the life member and was refundable. The aforesaid decision is not applicable to the facts of the case on hand and is distinguishable on facts. Here, the Tribunal, the last fact finding authority, has found that the receipt was not deposit but was towards the subscription of life membership. The amount was never refunded to any life member and there was no agreement to refund the subscription to such life member on demand.