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TMI Blog2015 (10) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal: "i) On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in holding that the sum of Rs. 85 lakhs received as sale proceeds by the assessee company as result of indenture dated 26.09.2001 signed by late Smt. Bachoobai Waronzow, transferring her rights arising out of agreement of 02.01.1995 with developers, neither result in capital gain nor is in the form of adventure in the nature of trade. ii) On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in concluding that the sum of Rs. 85 lakhs received by the assessee is a capital receipt overlooking the crucial fact that the amount was received as a result of an agreement the assessee had entered into with Mrs. Bachoobai Waranzow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f hearing, the decision of the CIT(A) may be set aside and that of the AO restored." Ground No.1 3. At the outset, the Ld. A.R. of the assessee has submitted that in relation to the issue involved/raised through ground No.1, the Department has already filed appeals for A.Y. 2004-05 and 2005-06 before the Hon'ble Bombay High Court and the Hon'ble High Court has admitted the following question of law. "Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in coining to the conclusion that the amount received by the Assessee, as a result of Indenture dated 2611 September, 2001 signed by Late Sint. Bachoobai Woronzow, transferring her rights arising out of an agreement of 2" January, 1995 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Hon'ble Bombay High Court is delivered. The Tribunal admitting the declaration made by the assessee has directed that the issue of nature of advance received by the assessee is to be kept in abeyance and has to be decided after receiving the orders of the Hon'ble Bombay High Court for earlier two assessment years. The relevant part of the order of the Tribunal for the sake of convenience is reproduced as under: "4.Before us, Authorised Representative(AR) stated that the assessee had filed declaration u/s.158 of the Act, that it would abide by the order of the Hon'ble Court delivered in the appeal for the AY.s filed by the AO, that the issue was identical to the issue raised in the appeal for the year under appeal. In pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the department is not adjudicated by the Hon'ble Bombay High Court. In our opinion, the provisions of section 158A of the Act cast a duty upon the AO and the Appellate Authorities pass a reasoned order. A reasoned order presupposes application of mind by the authority concerned i.e.A0/Appellate Authority. They are required to elaborate the reasons as to why they oppose or accept the proposal submitted by the assessee.A one liner submission-" I agree/I do not agree" is a bald statement and is of no judicial value. As stated earlier such an order is not subject to appeal or revision. Therefore, it becomes more important that the authority handling such application devote some time and pass an order that could show as to how and why it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the observations made by the Tribunal on similar declaration filed under section 158A in relation to A.Y. 2006-07. We admit the declaration filed by the assessee and dispose off this ground of appeal with the direction the AO will decide/ apply the findings/directions as will be given in the order of the Hon'ble Bombay High Court on the question of law framed by the Hon'ble Bombay High Court vide order dated 10.10.2014 in Revenue's appeal bearing ITA No.1261/M/2013 for A.Y. 2004-05 and further vide order dated 09.10.2014 in ITA No.1260/M/2013 for A.Y. 2005-06. Ground No.2 6. The ground No.2 raised by the Revenue is relating to the disallowance under section 14A of the Act. The Ld. A.R. of the assessee has stated that the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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