a) The assessee-company was engaged in the business of construction of residential complexes. It paid advance money to purchase a plot of land. It, however, cancelled the transaction and, consequently, advance money was forfeited by the vendor. The amount so forfeited was treated as revenue loss by assessee.
b) The Assessing Officer (AO) treated the same as capital loss on the ground that the land in question was treated as capital transaction by the vendor of the land. The CIT(A) confirmed the order of the AO.
c) Aggrieved by the order of the CIT(A), the assessee filed the instant appeal before the tribunal.