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TMI Blog2017 (8) TMI 920X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee company is engaged in rendering consultancy services and also publishing some magazine. A sum of Rs. 8,83,208/- was shown as 'Advance subscription' income along with other creditors. On being called upon to explain as to why this amount be not charged to tax, the assessee contended that it was in the nature of advance subscription and, hence, not chargeable to tax. The assessee further submitted that it was following mercantile system of accounting and similar advance subscription received in the preceding year was offered for tax during the year under consideration. Not convinced, the Assessing Officer made addition for this sum despite noticing that similar addition made by the CIT(A) for the preceding year was deleted in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment order. Under such circumstances, it becomes patent that the amount of advance subscription cannot be subjected to tax in the year of receipt. We, therefore, overturn the impugned order on this issue and order for the deletion of addition. 5. The only other issue raised in this appeal is against the sustenance of disallowance of Rs. 12 lac out of total disallowance of Rs. 24 lac made by the AO from professional fees paid by the assessee to Mr. Sagnik Goswami. During the course of assessment proceedings, it was observed that the assessee paid a sum of Rs. 25 lac and odd as 'Professional fee' to one Mr. Sagnik Goswami. On being called upon to justify the payment, the assessee submitted that Mr. Sagnik Goswami is a relative of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been brought to our notice that while giving effect to the order passed by the Tribunal for the assessment year 2009-10, the Assessing Officer, vide his order dated 21.11.2014, has not made any addition towards payment to Mr. Sagnik Goswami. Similar is the position in respect of the order passed by the Assessing Officer for the assessment year 2007-08 giving effect to the Tribunal order. A copy of such order dated 09.10.2015 passed by the Assessing Officer has also been placed on page 67 onwards of the paper book in which no such addition has been made. In view of the above discussion, it is clear that the Department has accepted the genuineness of payment to Mr. Sagnik Goswami and its eligibility for deduction for the immediately precedin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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