Advance from Overseas Patients – Capital or Revenue Receipts?

ITO Vs Dr. Sunitha Agarwal (ITAT Bangalore) The advance received from patients cannot remain perpetually so and even after passage of 46 months, it has not been recognized as revenue. Hence the claim of the assessee that the receipts are capital in nature may not be entertained. Revenue before us is alleging the genuineness of transaction pertaining to the advances received from patients to the extent of Rs. 1,64,63,000/-. The Ld.CIT(A) called for remand report during the first appellate proceedings as according to which the assessing officer made categorical observation that the advances rece...