#refund of advance

The commission ordered the hotel to refund the consumer’s Rs 16.12 lakh advance, plus interest, compensation and costs, because the promised postponement could not override the contract’s cancellation clause. This ruling reinforces that any advance must be returned when the agreed service is not performed, safeguarding consumers in hotel and event bookings.

The ITAT Delhi has ruled that funds received as a refund of a prior advance payment cannot be taxed as unexplained credit under Section 68 merely because the payer is a bogus entity. This clarifies that the nature of the transaction-refund of consideration-trumps the source’s legitimacy, offering critical relief to businesses engaged in legitimate commercial advances.

Gauhati HC rules that a plaintiff cannot seek damages for fraud while simultaneously demanding specific performance of an illegal agreement. The court upheld a refund of Rs. 12,00,000 with 10% annual interest from the payment date but dismissed claims for lost income and mental agony, reinforcing the principle that illegality voids equitable remedies.