Advance forfeited without transfer of capital assets is taxable as ‘Income from Other Sources’

Anthony P Lewis Vs ITO (ITAT Mumbai) ITAT Mumbai held that as per Section 56(2)(ix) of the Act money received as advance would be treated as income liable to tax in the hands of recipients under the head ‘Income from Other Sources’ provided such advance is forfeited and the negotiations do not resulted in transfer of the capital assets. Facts- The Appellant at the relevant time was engaged in the business of dealing in buying and selling of land, real estate property and giving properties on a lease. Reassessment proceedings were initiated against the Appellant u/s. 147 of the Act as notic...