https://www.taxtmi.com/caselaws?id=278687 Loss of earnest money forfeited under an agreement to purchase immovable property was treated as a genuine business loss where the contract contained a forfeiture clause, time was of the essence, and the record did not show a sham or fabricated transaction. The Assessing Officer could not reject the claim on mere suspicion or a general allegation of non-genuineness. Where contemporaneous documents support the forfeiture and there is no material of deliberate contrivance or collusion, the resulting loss is allowable in computing income. The appellate finding that the disallowance was unsustainable was affirmed on the factual matrix described. en-us Fri, 20 May 2016 00:00:00 +0530 Mon, 18 Feb 2019 06:31:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=278687 Loss of earnest money forfeited under an agreement to purchase immovable property was treated as a genuine business loss where the contract contained a forfeiture clause, time was of the essence, and the record did not show a sham or fabricated transaction. The Assessing Officer could not reject the claim on mere suspicion or a general allegation of non-genuineness. Where contemporaneous documents support the forfeiture and there is no material of deliberate contrivance or collusion, the resulting loss is allowable in computing income. The appellate finding that the disallowance was unsustainable was affirmed on the factual matrix described. Case-Laws Income Tax Fri, 20 May 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=278687