COMMISSIONER OF INCOME TAX Vs. GAUTAM R CHADHA

JUDGEMENT

(1.) These three appeals being ITA No. 310/09, 1115/10 and 358/11 are preferred against the orders passed by Income Tax Appellate Tribunal ( the Tribunal? for short) dated 22/08/08, 17/06/2009 and 16/07/2010 relating to assessment years 2003-04, 2005-06 and 2007-08 respectively. Since the substantial questions of law in ITA 1115/10 and ITA 358/11 is also there in ITA 310/09, we propose to dispose of these three appeals through this common order, taking ITA 310/09 as the lead case.

(2.) Brief facts of the case are that the assessee was engaged in the business of travel agency under the name and style of M/s Tirun Travel Marketing. It is the representative of M/s Royal Caribbean Cruise Limited (hereinafter, RCCL? for short), responsible for marketing and selling Royal Caribbean and Celebrity Cruise all over the world. The respondent/assessee filed the return for Assessment Year 2003-04 declaring income at Rs. 79,59,400/- on 20.11.2003.

(3.) On perusal of balance sheet as well as tax audit report, the AO noticed that assessee had disclosed a sum of Rs. 1,44,76,873/- as money received in advance against booking by customers in INR and USD. Though the said amount was received during the year, the same was not taken into account as income of the current year. The AO observed that the assessee was receiving booking amount in nominal percentage, substantial money was being received before the sailing of cruise and upon receipt of full amount, the money was being remitted to RCCL after deducting commission @ 25%. He also observed that if the person did not want to sail and cancel the trip then the entire advance would get forfeited. Accordingly, AO treated the entire amount of Rs. 1,44,76,873/- as the income of the assessee.