Advance receipt treatment: sums taxed as income during transfer negotiations are not deductible from the asset's acquisition cost. Where a sum received as an advance or otherwise during negotiations for transfer of a capital asset has been included in the assessee's total income under the income inclusion provision, 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 the 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.
Advance receipt treatment: sums taxed as income during transfer negotiations are not deductible from the asset's acquisition cost.
Where a sum received as an advance or otherwise during negotiations for transfer of a capital asset has been included in the assessee's total income under the income inclusion provision, 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 the cost of acquisition.
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