Refunded Cash Advances Not Taxable as Income: ITAT Kolkata

Lahoti India Ltd Vs ITO (ITAT Kolkata) Income Tax Appellate Tribunal (ITAT), Kolkata Bench, has sided with Lahoti India Ltd., deleting an addition of ₹1,00,02,000 made by the Assessing Officer (AO) and upheld by the National Faceless Appeal Centre (NFAC), or CIT(A). The ruling establishes that advances received for contracts, which are subsequently refunded, cannot be treated as taxable income. The case pertains to the Assessment Year 2009-10 and revolves around a significant sum of cash advances received by Lahoti India Ltd. for proposed land sales, which were later refunded to the contract...