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2022 (4) TMI 1459 - AT - Income TaxAccrual of income - advance received from customers - CIT(A) confirming the action of the AO in treating the advance received from customers as income of the previous year relevant to this assessment year - HELD THAT:- As exactly identical issue is covered in assessee’s favour in assessee’s own case for assessment year 2007-08 [2018 (10) TMI 1973 - ITAT CHENNAI]there is no dispute that the amount received by the assessee pertains to the services to be rendered in the immediate succeeding assessment year. Hence the assessee has rightly recognized its revenue in the succeeding assessment year. Therefore the addition made by the Ld.AO which is further sustained by the CIT(A) by treating the fees received in advance for the succeeding assessment year as the income of the assessee for the relevant assessment year is erroneous. Thus taking a consistent view, we direct the AO to delete the addition and this ground of assessee’s appeal is allowed. Non granting brought forward losses from the previous years for set off against the income computed under the normal provisions of the Act - HELD THAT:- After hearing rival contentions and going through the facts of the case, we noted that the CIT(A) has not at all considered this issue and hence, the matter is remanded back to the file of the CIT(A) for fresh adjudication on this very issue. Disallowance u/s 14A r.w.r. 8D - disallowing expenses relatable to exempt income - HELD THAT:- DR has not disputed that assessee has no dividend income. As the issue is covered by the Hon’ble Supreme Court’s decision in the case of CIT v. Chettinad Logistics (P.) Ltd. [2018 (7) TMI 567 - SC ORDER] wherein it was held that once there is no exempt income, no disallowance can be made by invoking the provisions of section 14A r.w.rule 8D of the Rules. As the issue is covered, we direct the AO to delete the disallowance made. Hence, this issue of the assessee’s appeals is allowed. Treatment of prior period income - - HELD THAT:- We noted that in case the prior period income has already been offered in assessment year 201213, the same should not be assessed in this year. The assessee will file these details before AO and will explain to the AO, how the assessee has included this income in assessment year 2012-13 relevant to financial year 2011-12. The AO will verify and accordingly, decide the claim of assessee. In case, there is duplicity of addition, the AO will remove the addition in this year. This issue of assessee’s appeal is set aside and allowed for statistical purposes. TDS u/s 195 - disallowance of advertisement expenses for non-deduction of TDS u/s.195 - payment made to nonresident by invoking the provisions of section 40(a)(i) - HELD THAT:- We noted that the ITAT, Bangalore in the case of Urban Ladder Home Décor Solutions Pvt. Ltd. [2021 (8) TMI 927 - ITAT BANGALORE] considered the decision of Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence Pvt. Ltd. [2021 (3) TMI 138 - SUPREME COURT] held that there is no requirement to deduct tax at source from the advertisement payments made for using the information technology facility u/s.195 - Thus we delete the disallowance and allow this issue of assessee’s appeals.
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