Refundable security deposit shown as a liability in books cannot be added to Income

PCIT Vs Landbase India Ltd (Delhi High Court)

Since the security deposit continues as a liability in the books of the assessee club, the assessing officer could not have added the same to the income of the assessee club. The tribunal has correctly, in our opinion, deleted the addition.

FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT

1. This appeal is directed against the order dated 26.08.2019 passed by the Income Tax Appellate Tribunal [hereafter referred to as “the Tribunal”].

2. According to the appellant-revenue, the impugned order passed by the tribunal raises a question of law for consideration by this Court.

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