BABUL SUPRIYA BARAL,MUMBAI vs. A.C.I.T. 11(1), MUMBAI

First grievance of the assessee relates to confirming the advance receipt of Rs.9,00,000/- received from Universal Music (I) Pvt. Ltd. as income of the assessee. Facts in brief are that the assessee was following cash system of accounting. During the year under consideration, assessee was in receipt of Rs.9 lakhs from Universal Music (I) Pvt. Ltd. as income from music album. The assessee has shown the same as advance in the year but offered the same in the next year. By observing 2 that assessee was following cash system of accounting, any amount of income receipt even if advance should be treated as income, the AO added the same in assessee’s income. Since the assessee was following cash system of accounting, the amount of income so received even as an advance is liable to be included in current year’s income. However, the AO has not allowed expenditure corresponding to this income. Accordingly, we direct the AO to allow the expenditure actually incurred for earning this income and also we direct the AO to exclude Rs.9.00 lacs from the income of the subsequent year wherein it was offered by the assessee. We direct accordingly.

Grounds Nos.4 to 6 pertain to computation of income from house property in respect of premise used by the assessee for his business purpose. We found that assessee has filed additional evidence before the CIT(A), which goes to the root of the issue for determining the income from house property, which was not accepted by the CIT(A). Before us, the assessee has also filed application under Rule 29 of the Income Tax Appellate Tribunal Rules and placed on record evidence in relation to grounds No.4 & 5, in respect of addition to house property and in relation to unexplained investment. All these evidence goes to the root of the issue, therefore, in the interest of justice, ground Nos. 4 to 6 are also restored back to the file of the AO for deciding afresh after considering the evidence so filed by the assessee.

In the result, appeal of the assessee is allowed in part. Order pronounced in the open court on this 09/12/2015. Sd/- Sd/- (RAM LAL NEGI) (R.C.SHARMA) न्यानयक सदस्य / JUDICIAL MEMBER ऱेखा सदस्य / ACCOUNTANT MEMBER भुंफई Mumbai; ददनांक Dated 09/12/2015 प्र.कु.मभ/pkm, नन.स/ PS आदेश की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to : अऩीराथी / The Appellant 1. प्रत्मथी / The Respondent. 2. आमकय आमुक्त(अऩीर) / The CIT(A), Mumbai. 3. आमकय आमुक्त / CIT 4. ववबागीम प्रनतननधध, आमकय अऩीरीम अधधकयण, भुंफई / DR, ITAT, Mumbai 5. गार्ा पाईर / Guard file. 6. सत्मावऩत प्रनत //True Copy// आदेशाि सार/ BY ORDER,