TMI Blog2008 (3) TMI 366X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 and 57/Ind/2007 vide order dt. 22nd Feb., 2008'. 4. These were, therefore, refixed for hearing. Since these are the appeals of quantum and the Department's appeals are with regard to the penalty in the same matter in issue, therefore, we propose to decide quantum appeals as under. WTA Nos. 5 and 6/Ind/2005 (Assessee's appeals): 5. Both the appeals by the assessee are directed against common order of CWT(A)-I, Indore, dt. 3rd Nov., 2004, for asst. yrs. 1997-98 and 1998-99. 6. Briefly facts of the case are that according to the assessment order, notices under s. 17(1) were issued for both the years as the assessee did not file the return of wealth. Later on, the returns were filed disclosing taxable wealth at Rs. nil. The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -trade as reflected in the balance sheet also. As per provisions of s. 2(ea) of the WT Act, the house for residential or commercial purposes, which forms part of the stock-in-trade is not included in the definition of an asset. Since the assessee is holding the building as stock-in-trade and offering the income arising from it as business profits, the inclusion of assets in the total wealth is against the provisions of law. It was further submitted that unsold stock has been given on rent of which some portions have already been agreed to be sold. The building has been constructed by raising loan and from the booking amount received as advance from the customers. Such amount received against the agreement to sale is liability against buildi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present appeals related to the advances received from M/s Indusind Bank against the sale of the property and that pending the completion of the sale transaction, the same property was given on rent to the same bank against which rent was received and the property on rent as well as under sale was already shown as stock-in-trade in the balance sheet of the assessee. Therefore, it being the stock-in-trade is not liable to WT Act. 10. The learned counsel for the assessee in the alternative submitted that the advances received against the property in sale should be treated as debt and should be deducted from the total wealth as per s. 2(m) of the WT Act. 11. On the other hand, the learned Departmental Representative relied upon the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommercial purposes, which forms part of stock-in-trade. 13. It is admitted fact that the assessee is a builder and is doing the business of construction, purchase and sale of property. It is also not in dispute that the assessee constructed the building "Industry House" and the same is shown as stock-in-trade in the books of account as well as in the balance sheet in the year under consideration. It is also not in dispute that the assessee entered into the agreement with Indusind Bank for sale of the property in question. pending registration and clearance. the same property subjected to sale was given on lease to the abovesaid bank. These facts clearly show that the property in question was held by the assessee as stock-in-trade, which w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the law and as such no case was made out for concealment of particulars or for furnishing inaccurate particulars. 17. The learned Departmental Representative further relied on the orders of the AO and submitted that the assessee has not filed return of wealth as well as did not furnish any particulars before the AO. Therefore, the penalty should not have been deleted in the matter. 18. Since we have allowed the appeal of the assessee on quantum, therefore, the issue of penalty would stand decided against the Revenue. Without considering the merits of the case, we are of the view that since the additions on quantum have already been deleted in appeals of the assessee, therefore, there is no basis left for imposing penalty against the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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