Advance receipt for providing any facility cannot be consider as income and in the absence of Income from property sec 28 is not applicable
Last updated: 22 February 2012
Court :
INCOME TAX APPELLATE TRIBUNAL
Brief :
It was observed that certain advances were received by the assessee from the intending buyers in terms of agreement dated 30.01.1999 for providing electrical connection and fire fighting equipments. These advances were not considered to be receipts in the nature of income as specific expenditure had to be incurred for providing aforesaid facilities to the buyers. In the year of sale, it has been ascertained that the expenditure exceeded the advances received by the assessee. In these circumstances, the question of adding advances to the income of the assessee does not arise. Therefore, it is held that the ld. CIT(Appeals) rightly deleted this addition also
Citation :
Income-tax Officer, Ward 6(1), New Delhi. (Applicant)
Vs.M/s M.G. Builders & Co. P. Ltd.,105, First floor, Loha Mandi,Naraina, New Delhi-110028.PAN: AAACM 0053E(Respondent)
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CS Bijoy
Published in Income Tax
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