Treatment of advance payments: taxed advances cannot be deducted again from the asset's cost when computing acquisition cost. The Bill inserts a proviso to section 51 to provide that where a sum received as an advance in negotiations for transfer of a capital asset has been included in the assessee's total income under income inclusion provisions in an earlier year, that sum shall not be deducted from the cost for which the asset was acquired, the written down value, or the fair market value when computing cost of acquisition.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Treatment of advance payments: taxed advances cannot be deducted again from the asset's cost when computing acquisition cost.
The Bill inserts a proviso to section 51 to provide that where a sum received as an advance in negotiations for transfer of a capital asset has been included in the assessee's total income under income inclusion provisions in an earlier year, that sum shall not be deducted from the cost for which the asset was acquired, the written down value, or the fair market value when computing cost of acquisition.
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