'Advance' received against sale of land is 'not' taxable in the year of receipt
Held in :::
THE HIGH COURT OF DELHI AT NEW DELHI
Judgment delivered on: 07.03 .2013
ITA 569/2012
COMMISSIONER OF INCOME TAX, DELHI
versus
DELHI APARTMENTS PVT LTD.
Facts in brief :::
1) No agreement has been signed in this year.
2) The possession has also not been delivered in this year.
3) Therefore, it is held that the property has not been transferred in this year.
4) In this view of the matter, the money received is only an advance, which will get taxed as and when the transaction actually takes place.
5) An assessee could hold lands either for business or as an investment. Accordingly it may offer for taxation under the head 'Business Income' OR ‘Capital gain’ ...
By CA Aniruddha Rathi
The author is participant of MVAA contest on this site. Help the author win Rs.1000 by sharing this article with others. To participate and win Rs.1000 prize money in this contest click here
Held in :::
THE HIGH COURT OF DELHI AT NEW DELHI
Judgment delivered on: 07.03 .2013
ITA 569/2012
COMMISSIONER OF INCOME TAX, DELHI
versus
DELHI APARTMENTS PVT LTD.
Facts in brief :::
1) No agreement has been signed in this year.
2) The possession has also not been delivered in this year.
3) Therefore, it is held that the property has not been transferred in this year.
4) In this view of the matter, the money received is only an advance, which will get taxed as and when the transaction actually takes place.
5) An assessee could hold lands either for business or as an investment. Accordingly it may offer for taxation under the head 'Business Income' OR ‘Capital gain’ ...
By CA Aniruddha Rathi
The author is participant of MVAA contest on this site. Help the author win Rs.1000 by sharing this article with others. To participate and win Rs.1000 prize money in this contest click here
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