https://www.taxtmi.com/caselaws?id=341941 Advance received for flats proposed on the 7th floor was not taxable as accrued income where approval existed only up to the 6th floor and further approval had not been obtained. Revenue from real estate sales accrues only when significant risks and rewards pass, effective control is retained no longer, and there is no material uncertainty over consideration. Here, the agreements for flats 701 and 702 were uncertain because of non-approval, disputed payments, cancellation of one agreement, and litigation over the other. The addition treating the advance as current year income was unsustainable and was deleted. en-us Fri, 31 Mar 2017 00:00:00 +0530 Fri, 21 Apr 2017 07:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=341941 Advance received for flats proposed on the 7th floor was not taxable as accrued income where approval existed only up to the 6th floor and further approval had not been obtained. Revenue from real estate sales accrues only when significant risks and rewards pass, effective control is retained no longer, and there is no material uncertainty over consideration. Here, the agreements for flats 701 and 702 were uncertain because of non-approval, disputed payments, cancellation of one agreement, and litigation over the other. The addition treating the advance as current year income was unsustainable and was deleted. Case-Laws Income Tax Fri, 31 Mar 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=341941