No tax on amount received as ‘On-Money’ from sale of Flats u/s 68

Kalyan Development Corporation Vs ACIT (ITAT Mumbai)

Conclusion:  Since the addition pertained to the “receipt of money” from the sale of flats by the assessee and these amounts did not represent the actual receipts in the hands of the assessee, they could not be subjected to tax.

Held: AO made addition of Rs.5,30,280/-in respect of receipt of “on money in cash” from the customers who had purchased flats in the project of assessee “Mangeshi Sanskar”. AO noted that assessee had received on money from the purchasers of the flats o

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