Applicability of Sections 41(1) & 68 on Lease and Booking Advances as Ceased Liabilities – ITAT Ruling

ITO Vs N. Kumar Housing and Infrastructure Pvt. Ltd. (ITAT Nagpur) ITAT Nagpur order on applicability of Sections 41(1) and 68 of the IT Act, concerning the addition of lease advances and booking advances as Brief facts : The assessee, engaged in constructing commercial and residential properties, filed its return for the assessment year 2020–21, declaring a total loss of ₹3,85,795. The case was selected for limited scrutiny due to high creditors/liabilities and investment in immovable property. During assessment, the Assessing Officer (AO) observed that the assessee had reported “other ...