Dismissing the appeal of the revenue the Tribunal held that the amount received as advance for sale of property was a capital receipt and it could not be construed as a trading liability. Since the liability continued to remain in balance sheet of assessee, it could not be treated as cessation of liability. (AY. 2015-16))
ACIT v. Ashish Indur Chowdhry (2021) 190 ITD 435 (Mum.)(Trib.)
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Advance against sale of property-Continued to remained as liability in the balance sheet-Addition cannot be made as cessation of liability.