TMI Blog2004 (7) TMI 597X X X X Extracts X X X X X X X X Extracts X X X X ..... ived in preceding year under section 41(1) without any basis and said addition was bad in law and against the facts of the case." 2. During the course of hearing the learned counsel for the assessee has opted not to press ground No. 1. Accordingly, the same is dismissed, as not pressed. 3. Apropos ground No. 2 it is noticed from the record that the assessee has received a sum of Rs. 1,14,800 from Shri Sudershan Kapoor during the financial year 1989-90 on booking of flat No. 205 in Devika Apartments, Vaishali, Ghaziabad and this amount was shown as a credit liability. No further payment was received from him on account of various instalments due and ultimately during the year 1989-90 the booking was cancelled and the amount of Rs. 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions made by the authorized representative of the appellant and the facts discussed by the Assessing Officer in the assessment order. It is observed that the appellant company was engaged in the business of construction and following the project completion method of accounting. The appellant company has started the Vaishali Project in 1989 and completed in 1997. The flat of Shri Sudershan Kapoor was booked in 1989 and paid the amount of Rs. 1,15,500. As stated above the appellant company has cancelled booking and deducted cancellation charges of Rs. 14,350 in 1999 and the balance amount retained. The amount has not been refunded to Shri Sudershan Kapoor or his legal heir. The appellant company has failed to establish before the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ject as all the expenses related to Vaishali Project have already been allowed to the appellant company. Therefore, the amount of Rs. 1,00,450 is to be treated as income of the appellant company. The addition made on this account is confirmed." 5. Aggrieved the assessee has preferred an appeal before the Tribunal and reiterated his contentions. During the course of hearing a specific query was asked from the assessee s counsel about the present status of this amount and in response thereto it was submitted that this amount still shown in the books of account of the assessee and it has not been claimed so far by the legal heirs of Shri Sudershan Kapoor. Since his membership was cancelled in the year 1999 and thereafter no claim of refund ..... X X X X Extracts X X X X X X X X Extracts X X X X
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