ITAT allows loss due to Forfeiture of amount paid against Land Purchase

ACIT Vs K.B. Developers (ITAT Kolkata) Sole ground on which the disallowance is made is that the assessee had entered into these agreements, without making solid provisions to raise funds by due dates and hence it does not make any sense for a firm engaged in commercial venture to enter into these agreements. He drew attention to the Bench to the order of the ld. CIT(Appeals) and supported the same. He vehemently contended that the Assessing Officer has not doubted the genuineness of the agreement of sales nor he has been made any enquiry or investigation with the sellers of the land or with t...