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TMI Blog2024 (1) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... e refundable security deposit for due completion of the project by the developer - argument of the Standing Counsel is that the said amount was received by the MD on behalf of the petitioner and retained by him though it was stated to be the sum held as security deposit against the construction of commercial complex and which work has not yet started - HELD THAT:- As discernable from the Developm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts till the same is refunded to the builder viz., M/s. Royal Mindz Infra Pvt. Ltd. and respondent Department is directed to drop the proceedings against the petitioner to collect tax in respect of the said amount. - Honourable Sri Justice U.Durga Prasad Rao And Honourable Smt Justice Venkata Jyothirmai Pratapa For the Petitioner : N VIJAY For the Respondent : None ORDER P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el is that the said amount of Rs. 50.00 lakhs was received by the Managing Director on behalf of the petitioner and retained by him though it was stated to be the sum held as security deposit against the construction of commercial complex and which work has not yet started. Therefore, the sum of Rs. 50.00 lakhs received by the petitioner was held to be revenue receipt and brought to tax as income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt with the builder viz., M/s. Royal Mindz Infra Pvt. Ltd. The document inter alia showed at clause 38 that the second party (builder) has agreed to pay sum of Rs. 50.00 lakhs towards interest free refundable security deposit to first party (owner) and accordingly, paid the said amount. Then clause 40 reads that it was agreed between the parties that the aforesaid interest free refundable security ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt for the AY 2019-20 to impose tax. 6. Accordingly, this Writ Petition is allowed with a direction that the petitioner shall hereafter show the amount of Rs. 50.00 lakhs as interest free security deposit in its books of accounts till the same is refunded to the builder viz., M/s. Royal Mindz Infra Pvt. Ltd. and respondent Department is directed to drop the proceedings against the petitioner to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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