1987 (11) TMI 122

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....holding that the advance made for purchase of commercial flat in the Pragati Construction Co. is not an asset covered within the definition of assets in s. 2(e) of the WT Act. 2. The learned AAC has erred in directing the WTO to take the value of the flats to the extent of advance on the valuation date ignoring provisions of s. 7 of the the negotiations for sale of flats were almost complete an....

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....,63,000, which in the original return, was inadvertently mentioned at Rs. 3 lakhs, Both in the original and revised returns, a sum of Rs. 1,44,400 was declared as advance against the commercial flats bearing Nos. 107, 108 in Pragati Power, against which assessed value was adopted at Rs. 2,10,000. Therefore, the appeal No. 332/87 has emanated from addition of Rs. 65,600 made in the assessment, but ....

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.... time of possession and handing over flats to the respective buyers. In such view of the matter, the first appellate authority held that advance made could not be covered in the definition of assets within the purview of s. 2(e) of the WT Act, 1957. 7. For the Revenue, Shri C.R. Ravichandhran very effectively submitted that the AAC completely misdirected himself by holding that the advance made....

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.... was sought to be acquired was subject to several factors, like the project being abandoned or rights not being transferred. Collapse or destruction of a building could be the typical examples in such situation. The WTO stated that in respect of the two flats for which advances have been made the assessee made a profit of Rs. 75,363 in April, 1981, for which negotiations were in progress on valuat....