Accrual of income — 25% of the booking advances received by the assessee-representative of M/S Royal Caribbean Cruise Limited against the bookings by customers for boarding the cruise should be treated as income of the assessee, assuming that there are no cancellations. However, the assessee shall be entitled to a 10% credit on account of travel agent’s commission after ascertaining the actual outgoings in this regard, as held by DelHC in CIT v Gautam R Chadha — In favour of: The assessee (partly); ITA Nos 310/2009, 358/2011, 1115/2010.

Setting off loss under s 70 — Where shares are traded for the purposes of business, any loss arising therefrom will be considered as “Business Loss” and the assessee is entitled to set-off the loss in the share trading business from that of the travel agency business.

Decided on: 27 July 2011.