2013 (11) TMI 1517

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....v Jain ORDER B. R. Mittal (Judicial Member).- The assessee has filed this appeal for the assessment year 2008-09 against the order of the learned Commissioner of Income-tax (Appeals) dated February 23, 2012 disputing confirmation of addition of Rs. 10,00,000 on the ground that the said amount ought to have been declared under cash method of accounting. 2. The relevant facts giving rise....

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....ance receipt and was to be adjusted by Red Chillies Entertainment P. Ltd. on signing formal agreement. The Assessing Officer did not accept the contention of the assessee on the ground that the assessee is following the cash method of accounting. Hence, advance so received is receipt in nature of income irrespective of the fact that when and how services are going to be performed. The Assessing Of....

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....cept contention of the assessee and confirmed the action of the Assessing Officer. Hence, this appeal before the Tribunal. 4. During the course of hearing it was contended that said amount was received in the assessment year 2005-06 and was also appearing in the balance-sheet as on March 31, 2005. The learned authorised representative referred to page 42 of the paper book to substantiate his su....

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....5-06. Even if the assessee following the cash system of accounting, the said advance of Rs. 10,00,000 would be considered as income of the assessee, in the year in which the assessee has performed the work. There is no material on record that the assessee has completed the work in the assessment year under consideration, viz, assessment year 2008-09. In view of the above, we consider it prudent th....