Refunded Security Deposit not taxable under section 56(2)(vii)(a)

Chandarani N. Goyal Vs ITO (ITAT Mumbai) Chandarani N. Goyal contested an order by the Income Tax Department, challenging the taxability of a security deposit refund under section 56(2)(vii)(a) of the Income Tax Act. The Mumbai Income Tax Appellate Tribunal (ITAT) addressed this issue. The case revolved around a security deposit received by Chandarani N. Goyal from a developer as part of a development agreement. The Income Tax Officer (ITO) treated this deposit as taxable income under section 56(2)(vii)(a). However, the ITAT ruled that the refund of this deposit is not taxable, emphasizing tha...