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SECTION 56 OF THE INCOME-TAX ACT, 1961 – INCOME FROM OTHER SOURCES – CHARGEABLE AS

Gifts : Where assessee entered into a development agreement with a builder for construction of commercial complex and as per said agreement, builder was to pay an interest free and refundable security deposit of Rs. 50 lakhs to assessee and same was to be repaid within two months after handing over of commercial units, genuinity of development agreement not having been challenged by revenue, said amount of security deposit could not be treated as income for relevant year to impose tax – Coastal Ceramics and Clay Works (P.) Ltd. v. Union of India – [2024] 158 taxmann.com 323 (Andhra Pradesh)

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