Loss on purchase of land or earnest money paid - The undisputed ...

Real estate business loss from forfeited earnest money is deductible as it occurred in the ordinary course of business.

April 30, 2021

Case Laws     Income Tax     AT

Loss on purchase of land or earnest money paid - The undisputed fact is that the assessee is engaged in the business of real estate and that these payments were made in the course of business and that the earnest money was forfeited resulting into business loss of the assessee. - Such loss is allowable as a deduction - AT

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