ITAT Reverses Relief Decision, Rules Surrogacy Advances Not Income; Remands Case for Further Evidence on Account Inaccuracy.

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....The ITAT set aside the order of the Commissioner of Income Tax (Appeals) [CIT(A)] granting relief to the assessee (anonymized party) on the ground that the matter was sub-judice before the Supreme Court. The ITAT found that the CIT(A)'s order was based on a wrong fact, as the Supreme Court had already dismissed the writ petition before the appellate order was passed. Regarding the addition of advances received from surrogacy clients as income, the ITAT held that since the advances were received from foreign nationals, and due to the government's circular debarring foreign nationals from surrogacy in India, the procedures could not take place. Consequently, the liability to pay the amount subsisted, and the advances did not become the assess.........