Advance for DTH services taxable when such services rendered

ACIT Vs Sun Direct TV Pvt. Ltd. (ITAT Chennai)

The undisputed fact that emerges are that the assessee provide DTH services to various subscribers. The assessee receives subscription amount on quarterly / half-yearly / annual basis and credit the same to ‘deferred income account’. From this account, the revenue earned, for each day, are transferred to subscription account which is offered to tax by way of credit to Profit & Loss Account. This method of accounting has consistently been followed by the assessee since commencement of business in AY

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