2013 (11) TMI 12

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....same as advance receipt when the assessee company is claiming credit for TDS on certain portion of the said alleged advance.    3. The CIT(A) ought to have appreciated the fact that the receipts of Rs. 1.50 crores has been correctly identified as not relating to advance and are total business receipts." Ground Nos. 1 and 2 are general in nature. 3. Briefly stated facts are, Assessee company is in the business of news services and reports catering to daily news papers, magazines & other publications and electronic media. In the course of assessment, the AO sought reconciliation of TDS with amounts accounted and found that TDS was made by M/s Ushodaya Enterprises Ltd. on an amount of Rs. 1.50 crores. This amount was stated ....

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.... Total 415211749   9408701   Total Business income as per P&L A/c 707644304   16046920   Reimbursement of other expenses 173191 2.266 3925   Amounts recd. in advance 15000000 2.270 340500     722817495   16391345   Tax collected as source (TCS) on scrap sale 336 1.133 4   Gross Receipts and TDS as per TDS certificates 722817831   16391349 It was explained that assessee has to get monthly remuneration from various print and TV divisions and accordingly, total receipts during the year was shown at Rs. 70,76,44,304/- but TDS was made on reimbursement and other expenses of Rs. 1,73,191/- an....

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....an that advance has considered as income of the assessee. There is nothing on record to establish that assessee rendered any other service over and above the services which are being remunerated every month by a fixed amount, so as to treat the advance as income. It is already on record that every year there would be advances which were being adjusted in the later bills. Therefore, we do not see any reason to interfere with the order of the CIT(A). 7. In the course of argument, the learned counsel for the assessee relying on the decision of Hon'ble Delhi High Court in case of CIT Vs. Dinesh Kumar Goel, [2010] 331 ITR 10 submitted that revenue is recognized only when the services are actually rendered. This principle will apply to the fac....