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TMI Blog2013 (11) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... me. As considered by the Coordinate bench of ITAT, Mumbai Bench in case of Smt. Varsha G. Salunke Vs. DCIT, [2005 (9) TMI 226 - ITAT BOMBAY-F], just because the amount was covered by the TDS as per the provisions of section 194C of the Act, the same cannot be considered as income. However, as per the provisions of section 199, the credit for the TDS can be given in the assessment year in which the income is shown to have been offered for assessment. Therefore, to the extent of giving credit for the amount of TDS claimed, the AO is free to examine and allow the credit in the year in which the advance got adjusted in the bills and necessary credit can be given in that year as per the provisions of the Act - ITA No.251/Hyd/2013 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res on the reason that the amount was received for a particular service to be rendered by the assessee and there is no clause for advance payments in the agreement entered into with M/s Ushodaya Publications Ltd. It was further noted by the AO that the assessee claimed TDS credit of Rs. 3,40,500/- deducted on the above amount, therefore, the said amount is includible as receipt in the year. Assessee submitted reconciliation of gross receipts, TDS and income as per P L Account, which is as under: Sl. No. Particulars Amount Rate TDS Business income A) Print Division Subscription Revenue from UEL - Pub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advance. It was also further explained that advances have increased from Rs. 25,00,000/- in the immediately preceding year to Rs. 1.50 crores, during the year under consideration to Rs. 1.75 crores as on 31/03/2010 and Rs. 2.20 crores as on 31/03/2011, which was ultimately adjusted as on 31/03/2012. 4. The CIT(A) following the decision of his predecessor in AY 2003-04 on similar issue and also following the ITAT s order in that year dated 31/10/2011 (ITA No. 586/Hyd/2011) held that advance cannot be treated as income and accordingly the amount of Rs. 1.50 crores treated as income by the AO was deleted. 5. Revenue is aggrieved and is in appeal before us. 6. After considering the rival contentions and examining the paper book, we do not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er consideration as there is no evidence that the amount was received by the assessee for any particular services rendered so as to treat it as accrued income. As considered by the Coordinate bench of ITAT, Mumbai Bench in case of Smt. Varsha G. Salunke Vs. DCIT, [2006] 98 ITD (Mum.) (TM), just because the amount was covered by the TDS as per the provisions of section 194C of the Act, the same cannot be considered as income. However, as per the provisions of section 199, the credit for the TDS can be given in the assessment year in which the income is shown to have been offered for assessment. Therefore, to the extent of giving credit for the amount of TDS claimed, the AO is free to examine and allow the credit in the year in which the adva ..... X X X X Extracts X X X X X X X X Extracts X X X X
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