https://www.taxtmi.com/caselaws?id=294530 The Tribunal ruled in favor of the assessee, holding that the forfeiture of application money on Fully Convertible Debentures (FCDs) should not be treated as taxable income under Section 56(2)(ix) of the Income Tax Act. It was determined that FCDs do not qualify as capital assets of the issuer, and the money received as an advance was not in the course of negotiation for transfer of a capital asset belonging to the assessee. The Tribunal also highlighted the procedural error of the CIT(A) in confirming the addition without allowing the assessee an opportunity to present their case. en-us Mon, 05 Aug 2019 00:00:00 +0530 Mon, 19 Apr 2021 20:45:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=294530 The Tribunal ruled in favor of the assessee, holding that the forfeiture of application money on Fully Convertible Debentures (FCDs) should not be treated as taxable income under Section 56(2)(ix) of the Income Tax Act. It was determined that FCDs do not qualify as capital assets of the issuer, and the money received as an advance was not in the course of negotiation for transfer of a capital asset belonging to the assessee. The Tribunal also highlighted the procedural error of the CIT(A) in confirming the addition without allowing the assessee an opportunity to present their case. Case-Laws Income Tax Mon, 05 Aug 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=294530