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\u00a0 Assessing Officer \u00a0invoked 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\u00a0\u00a0 the \u00a0assessee 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 \u00a0provisions of section 41(1) read with section 28(iv) would not be\u00a0applicable. (AY. 2012-13)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Advance from a party against project to be carried out Project could not be implemented and amount is not returned due to financial constraints-Never received any benefit or enjoyed money that it had received as an advance, provisions of section 41(1) would not be applicable.[S.28(iv)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-51484","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-doo","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=51484"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51484\/revisions"}],"predecessor-version":[{"id":51485,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51484\/revisions\/51485"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=51484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=51484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=51484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}