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TMI Blog1987 (11) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... uction Co. is not an asset covered within the definition of assets in s. 2(e) of the WT Act. 2. The learned AAC has erred in directing the WTO to take the value of the flats to the extent of advance on the valuation date ignoring provisions of s. 7 of the the negotiations for sale of flats were almost complete and actually the interest in flats was transferred within a few days of the valuations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h in the original and revised returns, a sum of Rs. 1,44,400 was declared as advance against the commercial flats bearing Nos. 107, 108 in Pragati Power, against which assessed value was adopted at Rs. 2,10,000. Therefore, the appeal No. 332/87 has emanated from addition of Rs. 65,600 made in the assessment, but deleted by the AAC. 4. It is an accepted position in the three cases that, as on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter, the first appellate authority held that advance made could not be covered in the definition of assets within the purview of s. 2(e) of the WT Act, 1957. 7. For the Revenue, Shri C.R. Ravichandhran very effectively submitted that the AAC completely misdirected himself by holding that the advance made was outside the purview of the definition of asset in s. 2(e) of the Act. For the respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or rights not being transferred. Collapse or destruction of a building could be the typical examples in such situation. The WTO stated that in respect of the two flats for which advances have been made the assessee made a profit of Rs. 75,363 in April, 1981, for which negotiations were in progress on valuation date. By strange logic, the assessing officer owned that the market value of the advanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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