2010 (1) TMI 1308 - AT - Income Tax

Summary

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.