Tribunal rules ad receipts taxed on cash basis; Revenue's appeal dismissed; interest to be applied per law.

The Tribunal ruled that advertisement receipts should be taxed on a cash basis due to the absence of maintained books of account in India, aligning with a prior High Court decision. Consequently, the issue was resolved against the Revenue. Regarding interest under sections 234B and 234C of the Income-tax Act, the Tribunal found this matter to be consequential and instructed the Assessing Officer to levy interest according to the law. The Revenue's appeal was dismissed, with the order pronounced on January 1, 2010.

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Issues involved: Taxability of advertisement receipts, Interest u/s 234B and 234C

Taxability of advertisement receipts: The Revenue raised grounds challenging the taxability of advertisement receipts, contending for mercantile basis while the assessee argued for cash method. Referring to a previous case, the Tribunal upheld that advertisement receipts should be taxed on a cash basis due to absence of maintained books of account in India. The decision was supported by a High Court ruling, leading to the issue being decided against the Revenue.

Interest u/s 234B and 234C: Ground No.4 concerned the levy of interest under section 234B and 234C of the Income-tax Act. The Tribunal deemed this issue as consequential and directed the Assessing Officer to levy interest as per the law.

In conclusion, the appeal by the Revenue was dismissed, and the order was pronounced on January 1, 2010.

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