Tribunal held that earnest money for forfeited allowable as business loss. Commission paid to agent for purchase of plots of land. Transaction not materialise due to failure to pay full amount of consideration. Allowable as business loss. (AY. 2013-14)
ACIT v. K. B. Developers (2021) 189 ITD 344 /(2022) 95 ITR 176 / 210 DTR 317 / 216 TTJ 68 (Kol.)(Trib.)
S. 28(i) : Business loss-Real estate business-Earnest money forfeited-Allowable as business loss-Commission paid to agent for purchase of plots of land-Transaction not materialise due to failure to pay full amount of consideration-Allowable as business loss. [S. 37(1)]