Advance collected towards External Development Charges cannot form part of P&L: ITAT Delhi

ACIT Vs Ardee Infrastructure Pvt Ltd (ITAT Delhi) ITAT Delhi held that External Development Charges (EDC) is an advance collected to provide common facilities and other services to the prospective flat owners. Since, the same is collected on approval of HUDA, it cannot form part of Profit and Loss Account. Accordingly, addition towards the same rightly deleted. Facts- Revenue has preferred the present appeal mainly contesting that CIT (A) has erred in deleting the addition of Rs.1,80,39,139/- made on account of EDC (External Development Charges) paid to HUDA without appreciating the facts that...