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ITO v. Hajeebu Venkata Seeta ( 2022) BCAJ – March -P. 39( Hyd )( Trib)

S. 56 : Income from other sources – Advance received for purchase of property – Cannot be held as without consideration – Deletion of addition is held to be justified [ S. 56(2)(vi) , 68 ]

Dismissing the appeal of the Revenue  the Tribunal held that a sum received as advance or loan which is found to be correct  there is a precondition of its return to be made to creditor party . Therefore the sum received cannot be said to be without consideration hence the provision of section 56(2)(vii) is not applicable . The AO has not invoked the provision of S. 68 of the Act . ( TS.-50 -ITAT -2022 (Hyd) ( AY. 2009 -10) ( Dt. 5 -1 -2022 )