22 November 2012
Where the advance given by the prospective buyer has been forfeited by the seller then such amount is a capital loss for the buyer which has no treatment (a dead loss).
This is because he did NOT acquire any capital asset by giving advance. On forfeiture it CANNOT be said that the assessee has transferred any capital asset.
Also it cannot be said that he has acquired any capital asset against such amount.
Accordingly such amount will NOT have any treatment.
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