Addition cannot be made for refund of Advances paid against property

Sasi Enterprises Vs DCIT (ITAT Chennai) The assessee received refund of Rs.3.70 Lacs from one Mrs. Nagammal. In support, the assessee produced confirmation letter given by Shri P.V.Padmanadhan (son of deceased Mrs. Nagammal). It was stated that Mrs. Nagammal entered into an agreement for sale of 25 acres of land and received advance of Rs. 11 Lacs from the assessee in March, 1989. Since the transactions could not be completed, the amount was returned back in installments. In further support, letter from one Shri P. Amalanathan, Advocate was also filed. However, in the absence of any other docu...