TaxTMI 
TaxTMI 
2019 (11) TMI 1178
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....s / disallowances on following counts: i) Bad Debts written off disallowed - Rs. 25,00,000/- ii) Addition on account of undisclosed income from sale of shares under the head 'Income from other sources' - Rs. 65,51,352/-. 2.1 Aggrieved against the assessment order dated 29-12-2011, the assessee filed appeal before the CIT(A). The CIT(A) upheld the findings of Assessing Officer in disallowing bad debts. Qua addition on account of undisclosed income from sale of shares under the head 'Income from other sources', the CIT(A) held that the income of Rs. 65,51,352/- declared by the assessee as short term capital gain is assessable under the head 'Income from business'. Thus, the CIT(A) changed the head on income. 3. We will first take up the appeal of Revenue for adjudication. ITA No.840/PUN/2012 (Revenue's appeal) 4. Shri Sanket Joshi appearing on behalf of the assessee submitted at the outset that the appeal of Revenue is liable to the dismissed on account of low tax effect in the light of recent CBDT Circular No.17/2019 [F No.279/Mise.142/2007-ITJ (Pt)], dated 08-08-2019, wherein the monetary limit for filing of appeals by the Department has been enhanced ....
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....ed for filing of Cross Objections before the Tribunal. The assessee has given detailed reasons along with chronology of events causing delay in filing of Cross Objections in the application seeking condonation of delay in filing of Cross Objections. 12. On merits, the ld. AR submitted that the sole issue raised in the present Cross Objections is against disallowance of deduction claimed u/s 36(1)(vii) of the Act towards bad debts written off. The ld. AR submitted that the assessee entered into an agreement for purchase of land with M/s. Parasrampuria Industries Limited on 07-12-2005 for purchase of industrial plot No.3, Survey No.215, Village & Tehsil Dadra, Dist. Silvassa. The total purchase consideration was mutually agreed between the parties at Rs. 1,17,60,000/-. As per the terms and conditions of agreement, the assessee paid Rs. 10,00,000/- to the Vendor at the time of execution of agreement and the balance amount Rs. 1,07,60,000/- was to be paid by the assessee before 31-12-2005. As per clause 5 of the agreement, if the purchaser failed to comply with the terms of payment, the Vendor had the right to forfeit the amount paid and terminate / cancel the agreement. The asse....
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....been furnished by the assessee to show that the Vendor has performed its part as per the agreement. The investment in land is capital in nature, hence, the assessee cannot write off the amount paid as advance as bad debits. 15. We have heard the submissions made by rival sides and have perused the orders of authorities below. The Cross Objections filed by the assessee is time barred by 10 days. After examining the reasons given for delay in filing of Cross Objection, we are satisfied that the delay was for the bonafide reasons and not deliberate or negligence on the part of assessee. The delay of 10 days in filing of Cross Objection is condoned and the Cross Objection is admitted for hearing and adjudication on merits. 16. The appeal of Revenue has been dismissed on account of low tax effect. The ld. DR has questioned the maintainability of Cross Objection when the appeal of Revenue has been dismissed on account of low tax effect. The assessee has placed reliance on the decision rendered in the case of ACIT Vs. Kripa Chemicals Pvt. Ltd. (supra). In the aforesaid case, the Department had withdrawn the appeal. The ld. DR therein raised preliminary objection on maintainabilit....
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....industrial plot in its Balance Sheet as 'Current Assets'. It is relevant to mention here that the assessee is engaged in the business of trading in land / building and property development. Ostensibly, the assessee had purchased the industrial plot for trading and had held the same as stock-in-trade. This fact is evident from the books of account of assessee. The authorities below by placing reliance on clause 9 of the agreement have erred in coming to the conclusion that industrial plot was purchased by assessee for setting up industry and hence, the expenditure is on capital account. The authorities below were swayed by the phraseology used in para 9 of the agreement which mentions that "the said land for the use of industrial activities of the PURCHASER". The ld. AR of the assessee has drawn our attention to the object clause of the assessee company, which clearly indicates that the object of the assessee is business of land and property developers, builder and general construction. The Ld. AR has stated at the Bar that at no point of time the assessee was engaged in industrial activity or the objects of the assessee were amended to include carrying on of industrial activity ....