Subscription Money Received In Advance By DTH Operators Is Taxable Only When Services Are Provided To The Subscribers: Chennai ITAT
2 years, 10 months ago

Subscription Money Received In Advance By DTH Operators Is Taxable Only When Services Are Provided To The Subscribers: Chennai ITAT

Live Law  

The Chennai Bench of ITAT has ruled that subscription money received in advance by the DTH operators is not taxable. The CIT observed that the Chennai Bench of the ITAT in the case of ACIT versus M/s Sun TV Network Ltd, on an identical issue, had observed that there was no illegality or irregularity in the methodology adopted by the assessee in registering the revenue in the year of telecast of programme as against the year of receipt. The ITAT observed that the assessee provided DTH services to various subscribers and received subscription amount, which was credited to the 'deferred income account'. The ITAT ruled that the amount lying in the 'deferred income account' were advances received by the assessee for rendering services in the future. The ITAT observed that a co-ordinate bench of ITAT Chennai in the case of ACIT versus M/s Sun TV Network Ltd, had upheld the methodology adopted by the assessee in registering the revenue in the year of telecast of programme and not on the basis of receipt.

Income Subscription Revenue Held Received Itat Subscribers Assessee Cit Dth Operators Subscription Money Provided Dth  operators  revenue  money  deferred  subscribers  income  received  services  provided  dth  taxable  subscription  held  ao  assessee  itat

History of this topic

Amount Received In Advance For Services To Be Treated As Income Of Assessee, Chargeable Under Income Tax: Madras High Court
4 months, 1 week ago

Amount Received In Advance For Services To Be Treated As Income Of Assessee, Chargeable Under Income Tax: Madras High Court

Live Law  

The Madras High Court ruled that any amount received in advance for services should be treated as the income of the assessee and is, therefore, subject to income tax. However, if an assessee fails to adopt “Accounting Standards” properly for computation of income, the discretion is vested with the Assessing Officer under Section 145 of the Income Tax Act, 1961.” …

Expenditure Incurred After Set-Up of Business Is Allowable As Deduction, Even If No Business Income Is Earned By The Assessee : ITAT Chennai
2 years, 8 months ago

Expenditure Incurred After Set-Up of Business Is Allowable As Deduction, Even If No Business Income Is Earned By The Assessee : ITAT Chennai

Live Law  

The Chennai Bench of ITAT has ruled that once the business of an assessee is set-up, all the expenditure incurred by it would be allowable as deduction, notwithstanding the fact that no business income was earned by the assessee during the relevant year. The assessee RBL Hotels submitted before the ITAT that it had duly set-up its business during the …

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