Is Advance Amount forfeited for sale consideration taxable?

Last updated: 10 July 2021
Quick Summary
This judgement concerns whether an advance amount forfeited by a company, when a sale agreement failed, is taxable as income. The company argued it was a capital receipt and should reduce the property's cost, citing a Supreme Court ruling. The Income Tax Officer viewed the forfeited amount as undeclared income.

Court :
ITAT Bangalore

Brief :
The assessee has filed this appeal challenging the order dated 4.2.2020 passed by Ld. CIT(A)-1 Bengaluru and it relates to the assessment year 2011-12. The assessee is aggrieved by the decision of Ld. CIT(A) in confirming the addition made by the A.O. u/s 28(iv) of the Act.

Citation :
ITA No.408/Bang/2020

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1 Year PLAN
1999
(Excl. of GST ₹359)

BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)

3 Months PLAN
999
(Excl. of GST ₹179)

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Comments


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