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[2008] 300 ITR 140 (RAJ.) HIGH COURT OF RAJASTHAN Commissioner of Income-tax v. Mantra Tantra Yantra Vigyan N.P. GUPTA AND DEO NARAYAN THANVI, JJ. IT APPEAL NOS. 24 TO 31 AND 53 OF 2004 JANUARY 18, 2008 Section 4 of the Income-tax Act, 1961 - Income - Chargeable as Life membership subscriptions received by assessee-publisher for its magazine which were liable to be returned to subscriber as and when demanded, were to be treated as capital receipt The assessee, a firm, was involved in the business of selling Yantras to customers, after being treated by Havan and Puja, and was also selling publication of monthly journal on astrology, named as 'Mantra Tantra Yantra Vigyan', and was having huge number of subscribers. It was receiving Rs. 1,500 by way of subscription for the life membership, which sum received was directly shown in the balance sheet in the liability side. This amount was treated by the revenue as a revenue receipt in the hands of the assessee. Held that in view of the decision in Siddheshwar Sahakari Sakhar Karkhana Ltd. v. CIT [2004] 191 CTR (SC) 66, the amounts received by the assessee as subscription for life membership could not be said to be said to amount to revenue receipt, liable to tax; rather they were in the nature of capital receipts, liable to be returned to the subscriber/member constituent. K.K Bissa for the A ppellant. Anjay Kothari for the Respondent. JUDGMENT These nine appeals, arise in identical circumstances, are involve common questions, and are, therefore, being decided by this common order. Before proceeding further, it may be observed, that in one of the appeals, being Appeal No. 53/2004, the appeal was admitted by framing two substantial questions of law as under : "(1)Whether the learned Tribunal has erred in law in affirming the order of the Commissioner of Income-tax (Appeals) deleting the addition made by the Assessing Officer on account of life membership subscriptions received by the assessee treating the same as income and whether the finding of the learned Tribunal is perverse ? (2)Assuming that the subscription received by the assessee was a capital receipt by way of deposit and the subscription of the subscriber…

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