Case Law Details
ITO Vs Raj Maitry & Eskon Developer (ITAT Mumbai)
ITAT Mumbai held that Advance received from customers can’t be considered as income for the purposes of section 68 of the Act and powers of Ld. CIT (A) was coterminous with that of AO, and what an AO can do the same action, can be taken by him also.
The case of ITO Vs Raj Maitry & Eskon Developer was brought before the ITAT Mumbai, concerning the treatment of advance payments received from customers. The key contention revolved around whether such advances should be considered as income under section 68 of the Income Tax Act.
The dispute originated from the assessment year 2018-19 when the assessee, a partnership firm, filed its income tax return declaring a total income of Rs. 28,68,540/-. The assessment proceedings focused on two primary issues: income from real estate business and unsecured loans.
During the assessment proceedings, the Assessing Officer (AO) made significant additions to the income, including Rs. 12,63,66,352/- on account of advance received from customers under section 68 of the Act. However, the Ld. CIT (A) overturned these additions, leading to an appeal by the revenue before the ITAT Mumbai.
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