https://www.taxtmi.com/caselaws?id=794932 Section 56(2)(ix) applies only to money received during negotiations for transferring a capital asset where the negotiations fail and the money is subsequently forfeited. Advances provided to identify, procure and acquire land for third-party business projects do not meet that condition where the proposed land is stock-in-trade, which is excluded from the definition of capital asset under Section 2(14). The provision also requires actual forfeiture: continued recognition of advances as liabilities, passage of time and absence of a refund claim do not establish absolute entitlement to retain them. Legal extinguishment requires more than creditor inaction or non-traceability. en-us Wed, 08 Jul 2026 00:00:00 +0530 Tue, 14 Jul 2026 08:26:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794932 Section 56(2)(ix) applies only to money received during negotiations for transferring a capital asset where the negotiations fail and the money is subsequently forfeited. Advances provided to identify, procure and acquire land for third-party business projects do not meet that condition where the proposed land is stock-in-trade, which is excluded from the definition of capital asset under Section 2(14). The provision also requires actual forfeiture: continued recognition of advances as liabilities, passage of time and absence of a refund claim do not establish absolute entitlement to retain them. Legal extinguishment requires more than creditor inaction or non-traceability. Case-Laws Income Tax Wed, 08 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794932