The ITAT set aside the order of the Commissioner of Income Tax...

The ITAT set aside the order of the Commissioner of Income Tax (Appeals) [CIT(A)] granting relief to the assessee (anonymized party) on the ground that the matter was sub-judice before the Supreme Court. The ITAT found that the CIT(A)'s order was based on a wrong fact, as the Supreme Court had already dismissed the writ petition before the appellate order was passed. Regarding the addition of advances received from surrogacy clients as income, the ITAT held that since the advances were received from foreign nationals, and due to the government's circular debarring foreign nationals from surrogacy in India, the procedures could not take place. Consequently, the liability to pay the amount subsisted, and the advances did not become the assessee's income. The ITAT found merit in the assessee's argument that when the advances were received and shown as outstanding in the books of account, and the assessee recognized part of the income from those foreign nationals as income, the accounts could not be considered true and correct. The ITAT restored the issue to the Assessing Officer (AO) with directions to provide the assessee another opportunity to substantiate with evidence.