Security deposit is actually sale consideration and is merely used as devise to postpone tax liability

CIT Vs Ansal Properties And Industries (Delhi High Court)

Delhi High Court held that security deposit which is nothing more than sale consideration hence the same used as a devise to postpone tax liability towards an uncertain date. Accordingly, the said question is answered in favour of revenue.

Facts- The present petition has been preferred by the revenue on the question of law that whether the Tribunal was correct in law in holding that the amount of Rs.42 crore was taken by the assessee as security and the same cannot be termed as undisclosed income and

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