No Cessation of liability if Amount forfeited is subject matter of civil suit and cannot be taxed

Bharat Enterprises Vs ACIT (ITAT Mumbai)

I find that the facts of the case indicate that the assessee had claimed as other income, a sum of Rs.19,87,500/- received from a buyer who had booked the flat. Further, since there was irregular payment from the buyer, the assessee had forfeited the sum of Rs.19,87,500/- and offered the same as income. However, in the meanwhile, the said person had filed a suit. There is no doubt about the existence of the suit. In the remand report, the Assessing Officer has also submitted that the

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