A sum of Rs. 3 Crores advanced as loan by the director of the Assessee Company for its projects was converted into advance money for sale of property of the Assessee as it was unable to repay the loan. Subsequently the director was unable to pay the balance amount for purchase of the said property and therefore the advance money was forfeited by the Assessee company in terms of sale agreement. The AO held that the sale agreement was a colorable device and that the forfeited amount represents income u/s 28(iv) in the hands of the Assessee. The Tribunal followed the decision of the Mahindra & Mahindra Ltd. (2018) 404 ITR 1 and held that the provisions of section 28(iv) of the Act would not have application to any transaction involving money. In the present case, Rs.3 crores represented advance money forfeited by the assessee and the same also represents cash received on forfeiture of advance money, therefore, section 28(iv) is not applicable to the case. The Tribunal further allowed the claim of the Assessee that the amount would go to reduce cost of the property under section 51 of the Act. (AY.  2011-12)