TaxTMI 
TaxTMI 
2018 (7) TMI 577
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....ing airport and related infrastructure at the New Delhi airport. For the AY 2007-08, the assessee filed the return of income declaring a total loss of Rs. 150,55,30,337/- and revised its return of income on 30/03/2009 declaring a total loss of Rs. 149,48,78,939/-. During the scrutiny of the return of income, Learned assessing officer ("Ld. AO") made certain additions and determined the income of the assessee at Rs. 62,69,55,060/-. 3. However, subsequently, on examination of the income tax assessment records of the assessee, Learned CIT found that the assessee company had received Passenger Service Fee (PSF), but the same has not been disclosed as part of revenue receipt amounting to Rs. 77,06,88,000/-in the return of income by the assessee....
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....,06,88,000/-on account of passenger service fee for the assessment year 2007-08 in the regular assessment order, and therefore, such order is erroneous and prejudicial to the interest of revenue. Ld. CIT refused to keep the matter in abeyance since no decision of MOCA was communicated. Ld. CIT, accordingly set aside the issue and directed the Ld. AO to reframe the assessment by taking into account the revenue receipt on account of passenger service fee. Aggrieved by the order under section 263 of the Act, assessee preferred this appeal. 6. It is the argument of the Ld. AR that the passenger service fee is comprised of two components, namely, security component to the extent of 65% and facilitation component to the extent of 35%, collected ....
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.... bank account shall be transferred to the AAI for payment to CISF for CISF personnel deployed/services provided by CISF at other airports in and around India. 7. Basing on the recitals of the OMDA, SOP for account/audit of passenger service fee and the Escrow Agreement he submitted that the assessee has no control over the funds that are deposited in the escrow account for CISF PSF component inasmuch as it is for the exclusive purpose of purchasing the machinery required by the CISF, payments to be made to CISF and the balance to be transferred to AAI for payment to CISF for CISF personnel deployed/services provided by CISF at other airports in and around India. According to the assessee such an amount never comes to the books of the asses....
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....not income in the hands of the assessee as is held by the Mumbai Tribunal in the above referred case. He further submitted that in any case it is a contentious issue not amenable to the jurisdiction of the Learned CIT under section 263 of the Act. 10. Para contra, it is the argument of the Ld. DR that in the Official Memorandum dated 30/06/2006 issued by the Central Board of Direct Taxes(CBDT), Department of Revenue, Ministry of Finance, Government of India it is clearly held that the statutory levies collected by an assessee in the course of its business to be eventually turned over to the Government is income within the meaning of the Income Tax Act (Chowringhee Sales Bureau Private Limited vs. CIT (87 ITR 542, 548; (SC)) and in view of ....
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.... section 263 of the Act. 13. She further brought to our notice the order dated 31/01/2018 in ITA numbers 2636, 4213/Del/2012 and 3707/Del/2013 for assessment years 2008-09 to 2010-11 in assessee's own case wherein a coordinate bench of this Tribunal held that the facts relating to the Delhi International Airport Private Limited (supra) are slightly different from the facts involved in the case of Mumbai International Airport Ltd and that a coordinate bench of this daily tribunal remanded the matter to the Ld. Assessing Officer for verification as to the appropriation of the dividend amount and the treatment given to the surplus amount. She, therefore, submits that in view of the difference in facts as noted by the coordinate bench of this ....
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....ed by CISF at other airports in and around India. 16. Having gone through the OMDA Agreement, SOP and the escrow Agreement in the light of other relevant papers furnished in the paper book we are convinced that prima facie there appears to be no control for the assessee over the security component of the PSF collected by the airliner and deposited into the escrow account meant to make the security purposes. 17. Further we have gone through the orders of the Mumbai Tribunal in the case of Mumbai International Airport Private Limited (supra) and a coordinate bench of the Delhi Tribunal in assessee's own case (supra). In the former case the Tribunal returned a finding that the security component of the PSF amount does not constitute income i....