Advance Payment for Development Not Taxed as Income; CIT(A) Justifies Removing Addition Under Agreement Terms.

Accrual of income / Undisclosed income - Nature of advance money received - The amount so received is only for carrying out the development work in terms of the agreement between the parties and it was duly shown in the balance sheet filed with the authorities, as such it cannot be considered as commission or brokerage paid to assessee. It was received by the assessee as an agent to carry out the work entrusted to the assessee by Astitva group of companies and it cannot be taxed in the hands of assessee as income. Being so, the CIT(Appeals) was justified in deleting the addition on this count. - AT .....

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