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TMI Blog2019 (11) TMI 1178X X X X Extracts X X X X X X X X Extracts X X X X ..... ny engaged in the business of trading and development of land. The assessee filed its return of income for the impugned assessment year on 30.09.2009 declaring total taxable income as nil. The notice u/s 143(2) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'), was issued and duly served on the assessee. In scrutiny assessment proceedings, the Assessing Officer inter-alia, made additions / 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) u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls before the Tribunal by the Department. The CBDT vide circular dated 08-08-2019 (supra) has amended Para 3 of Circular No. 3 of 2018 dated 11-07-2018 thereby enhancing monetary limit of tax effect from Rs. 20 Lakhs to Rs. 50 Lakhs for filing of appeals by the Department before the Tribunal. Thus, without going into merit of the issues raised in the appeal, the present appeal of the Revenue is dismissed on account of low tax effect. 7. Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal, with the requisite material to show that the appeal is protected by the exceptions prescribed in Para 10 of the Circular dated 11-07-2018 and its amendment dated 20-08-2018. 8. In the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uria 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 assessee could pay only Rs. 25,00,000/- by the date fixed i.e. 31-12-2005. Since, the assessee could not pay t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and the documents on record. 14. On the other hand, ld. DR vehemently defended the order of CIT(A) in confirming the addition of Rs. 25 lakhs by disallowing bad debts written off as claimed by the assessee. The ld. DR submitted that the assessee has not furnished any document to show that effort was made by the assessee to recover the advance or to seek extension of time for paying remaining amount. The ld. DR further pointed that as per clause (9) of the agreement, the assessee had purchased land for industrial activities, clause 9 further indicates that it was incumbent upon the Vendor to complete all formalities in the Government offices and Panchayat to clear the title of the land and make the land available for use for indu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the same on merits. Similar issue regarding maintainability of Cross Objection of assessee in an appeal by the Revenue was considered by the Bangalore Bench of Tribunal in the case of M/s. Solidcore Techsoft Systems Vs. ITO (supra). In the said case, the appeal of Revenue and cross appeal by the assessee were disposed of by the Tribunal vide common order. However, the Cross Objection of assessee in the appeal filed by Department for same assessment year was listed separately. The Tribunal treated the Cross Objection as an independent appeal and adjudicated the issues raised therein by an independent order. 17. In the light of above decisions, the Cross Objection of assessee is treated as an independent appeal and is taken up for adjudic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness 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 clearl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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