https://www.taxtmi.com/caselaws?id=18385 The court held that the forfeited amounts, whether earnest money deposit or advance, are taxable income. It ruled in favor of the Revenue, affirming that the forfeiture changes the character of the amounts, making them subject to tax under section 10(3) of the Income-tax Act. The court found the Tribunal's differentiation between earnest money and advance amount fallacious, emphasizing that once forfeited, both should be treated as taxable income. The court concluded that the amounts lost their connection with the original transactions upon forfeiture, dismissing the need to address the additional questions raised by the Department. en-us Tue, 09 Apr 1996 00:00:00 +0530 Wed, 30 Sep 2009 16:03:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18385 The court held that the forfeited amounts, whether earnest money deposit or advance, are taxable income. It ruled in favor of the Revenue, affirming that the forfeiture changes the character of the amounts, making them subject to tax under section 10(3) of the Income-tax Act. The court found the Tribunal's differentiation between earnest money and advance amount fallacious, emphasizing that once forfeited, both should be treated as taxable income. The court concluded that the amounts lost their connection with the original transactions upon forfeiture, dismissing the need to address the additional questions raised by the Department. Case-Laws Income Tax Tue, 09 Apr 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18385