Reporting of sale proceeds of agricultural land

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This query is : Resolved

anant (Querist)

15 December 2013 Dear Sir,
In case of receipt of advance sales consideration upto 85% of the agreed price on the basis of unregistered agreement for sale of rural agricultural land and transfer of land through registered sale deed not affected even after more than 2 years from the date of agreement for sale, How should the advance sale consideration be treated or reported in ITR in case of belated return to be filed for the assessment year relevant to the FY in which agreement was made and 85% advance received.
Pl reply soon Thanks

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

15 December 2013 Advance received has to be shown as an advance only.
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The Balance sheet shows the position " as at the Date of balance sheet". It is not required to be modified "as at Return Filing Date."
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Rural agriculture will be shown as an asset till the transfer is not complete.
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Nikhil Kaushik

Nikhil Kaushik (Expert)

15 December 2013 agreed with bafna ji. please refer to Delhi High Court judgment in the case of Delhi Apartments case 147 TTJ 451

anant

anant (Querist)

16 December 2013 Dear Paras Sir,
Is the assesse required to mention the advance money received in his ITR also? Especially if the advance has been received in cash and the same deposited in bank account?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

16 December 2013 It depends upon the fact that whether the assessee is required to fill up the Balance Sheet and P&L data into the ITR.
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If he is not required to file ITR 4 then there is no requirement to furnish the balance sheet data. As the amount has been deposited into a Bank account it may not reflect as Cash Balance also.
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