The assessee-company had received Rs. 10 crores as security deposit under an agreement which was subsequently forfeited when the contract did not materialize. The Assessing Officer treated the forfeiture as revenue income taxable in the year of receipt, whereas the Tribunal held it to be a capital receipt not chargeable to tax. The Revenue contended that forfeiture of business advances should be taxed as business income. The High Court admitted the appeal to examine whether the Tribunal was justified in its conclusion. (AY. 2009-10)