2019 (3) TMI 63

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....AL NO. 1848 OF 2016 P.C.: 1. These are two groups of appeals involving two assessees. These appeals arise out of common background and common judgment of the Income Tax Appellate Tribunal ("the Tribunal" for short). We may refer facts from Income Tax Appeal No. 1760 of 2016. 2. Respondent in Income Tax Appeal No. 1760 of 2016 and connected appeals is an individual assessee who was operating an entertainment club where customers would be provided gambling facilities for a charge. The respondent in Income Tax Appeal No. 1762 of 2016 and connected appeals also an individual who was the owner of the premises where the said club was operating. The Revenue argues that both the assessees were active partners in the said business. 2.1 T....

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....er appeal before the Tribunal. The Tribunal dismissed the Revenue's appeal and gave further relief to the assessees. Instead of adopting the higher end of figure of Rs. 55,000/-, the Tribunal adopted a mean of Rs. 50,000/- per day for collection. The Tribunal was further of the opinion that this calculation cannot be spread over the entire period of six years, firstly because there would be a few holidays and secondly, because the adjustments would be required for inflation. The Tribunal, thus, reduced the amount discarding the collection for the holidays and also applied the reduction rate of 10% per annum for the past period. It is, this judgment of the Tribunal which has given rise to two sets of appeals. In all the appeals, the R....