No Hypothetical Income Can Be Taxed: Bombay HC on Cancelled Land Sale Agreements

CIT Vs Lok Housing & Constructions Limited (Bombay High Court) Bombay High Court held that no hypothetical income of the assessee could have been brought to tax. Accordingly, income not accrued due to cancellation of sale agreement. Thus, order upheld and appeal of revenue dismissed. Facts- Subsequent to the survey on the assessee, a Notice u/s. 142(1) of the Income Tax Act, 1961 was issued to the assessee calling for its return of income. In response to this Notice, the assessee filed a return of income, declaring income of Rs.1,35,47,15,708/­. In this return of income, the assessee­ ...