TMI Blog2014 (5) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... that existed between the assessee and its customers who used to remit the amounts towards the expenditure to be incurred by them, has not been discussed - the 18 invoices raised and the net income reported - in the absence of any investigation as to the contractual arrangement that existed between the assessee and its customers, the AO had to necessarily carry out the necessary enquiry or investigation to see the amounts received and how they were expended – the matter is remitted to AO for fresh consideration – Decided in favour of Assessee. - ITA 29/2014, CM APPL. 1598-1600/2014 - - - Dated:- 6-5-2014 - S. Ravindra Bhat And Vibhu Bakhru,JJ. For the Appellant : Mr. Salil Kapoor with Mr. Vikas Jain, Mr. Sanat Kapoor and Mr. Ankit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.6 Out directions on this issue: We have considered the facts of the case. It is noticed that AO has clearly brought on record the discrepancy. The amount under reference is received by the assessee. The payer has already treated this amount as expenditure during the year. If the revenue is recognized in the case of the assessee during this year itself it will lead to anomaly. Therefore, we do not find any infirmity in the proposed action of the AO. An alternate arguments has been raised by the assessee of not giving credit of pass through cost in case the amount is being treated as revenue. The same also could not have been entertained by AO as no detail has been provided by the assessee as how much is pass through cost incurred du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ethod or under the proportionate completion method, whichever relates the revenue to the work accomplished. Such performance should be regarded as being achieved when no significant uncertainty exists regarding the amount of the consideration that will be derived from rendering the service. 6. It also relies upon the other relevant portion of the Accounting Standard No.9 pertaining to advertising and insurance agency commission, which reads as follows: - 2. Advertising and insurance agency commissions Revenue should be recognised when the service is completed. For advertising agencies, media commissions will normally be recognised when the related advertisement or commercial appears before the public and the necessary intimation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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