Assessee received certain amount as advance from ‘M’ against project to be carried out during year 2001-02 but said project could not be implemented. However, amount was not returned by assessee due to financial constraints  Assessing Officer  invoked provisions of section 41(1) on ground that there was cessation of liability as same had ceased to exist and that assessee had reinvested amount received as advance in shares of group companies of ‘M’ which was later on sold at loss and such capital loss was never claimed as set-off by assessee. He further invoked provisions of section 28(iv) to add aforesaid amount as income of assessee. Tribunal deleted the addition.On appeal the Court held that   the  assessee never received any benefit or enjoyed money that it had received as an advance and, therefore, no benefit was derived out of said transactions as admitted by Assessing Officer in assessment order. Finding of fact  provisions of section 41(1) read with section 28(iv) would not be applicable. (AY. 2012-13)