Shri Kamlesh Raghuvirprasad Agarwal, Ahmedabad V. The Dy.CIT.,Circle-12, Ahmedabad

CO 206/AHD/2009

• Counselvise Citation: [2011] 122 COUNSELVISE.COM (IT) 6695 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 14 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 09-12-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 17-11-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 25-09-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D V SINGH
• Assessee Lawyers: VIJAR RANJAN
• Keywords: Bad and doubtful debts
• Section: 69C; 28

Judgement Text

- 1 - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A AHMEDABAD BEFORE S/SHRI D.K.TYAGI, JM AND A. MOHAN ALANKAMON Y, AM, AM. C.O. NO.206/AHD/2009 ARISING OUT OF ITA NO.2309/AHD/2009 ASST. YEAR:2006-07 SHRI KAMLESH RAGHUVIRPRASAD AGARWAL, RAMKUMAR MILL COMPOUND, SARASPUR, AHMEDABAD. VS. DY. CIT,, CIRCLE-12, AHMEDABAD. (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI VIJAR RANJAN, AR RESPONDENT BY:- SHRI D.V. SINGH, SR.DR DATE OF HEARING :17/11/2011 DATE OF PRONOUNCEMENT : 9/12/2011. O R D E R PER D. K. TYAGI, JUDICIAL MEMBER . THIS CROSS OBJECTION HAS BEEN FILED BY THE ASSESSE E AGAINST THE ORDER OF LD. CIT(A) DATED 1.6.2009. THE FOLLOWING G ROUNDS HAVE BEEN RAISED IN THIS CROSS OBJECTION :- (1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) ERRED IN UPHOLDING THE ADDITION U/S 69C IN A SUM OF RS.92,747/-. CO NO.206/AHD/2009 IN ITA NO.2309/AHD/2009 ASST. YEAR 2006-07 2 (2) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE T HE CIT(A) ERRED IN UPHOLDING DISALLOWANCE OF BAD DEBTS TO THE EXTENT OF RS.2 LACS. 2. THE FIRST GROUND OF THE CROSS OBJECTION RELATING TO SUSTAINING OF ADDITION OF RS.92,747/- MADE U/S 69C, DOES NOT ARIS E OUT OF THE ORDER OF LD. CIT(A), HENCE THE SAME NEEDS NO ADJUDICATION AN D THE SAME IS DISMISSED. 3. THE SECOND GROUND RELATES TO SUSTAINING DISALLOW ANCE OF BAD DEBTS TO THE EXTENT OF RS.2 LACS. DURING THE ASSESSMENT P ROCEEDINGS THE AO FOUND THAT ASSESSEE CLAIMED DEDUCTION OF BAD DEBT W RITTEN OFF OF INTEREST RECEIVABLE OF RS.2 LACS. BEFORE AO THE ASSESSEE FAI RLY ADMITTED THAT THIS AMOUNT WAS NOT ALLOWABLE AS A BAD DEBT AS THE SAME WAS NOT TAXED IN THE EARLIER YEAR. THE CLAIM WAS, THEREFORE, REJECTED BY THE AO AND ADDITION WAS MADE. BEFORE LD. CIT(A) THE CLAIM OF THE ASSESS EE WAS THAT THIS AMOUNT WAS GIVEN DURING THE COURSE OF ITS BUSINESS OF WEAVING OF GREY CLOTH AND SUCH AMOUNT WAS NOT RECOVERED FROM THE BR OKER WHICH HAS RESULTED INTO BUSINESS LOSS TO THE ASSESSEE AND THE SAME IS AN ALLOWABLE DEDUCTION U/S 28 OF THE ACT. SINCE NO DETAILS WERE FILED IN SUPPORT OF ITS CLAIM THAT ADVANCES WERE FOR BUSINESS PURPOSE, THE LD. CIT(A) CONFIRMED THE ADDITION MADE BY THE AO. CO NO.206/AHD/2009 IN ITA NO.2309/AHD/2009 ASST. YEAR 2006-07 3 4. BEFORE US ALSO NO DETAILS WHATSOEVER IN RESPECT OF CLAIMING THIS DEDUCTION WERE FILED. THEREFORE, WE ARE NOT INCLINE D TO INTERFERE WITH THE ORDER OF LD. CIT(A) AND UPHOLD THE SAME. 5. IN THE RESULT, THE CROSS OBJECTION FILED BY THE ASSESSEE IS DISMISSED. ORDER WAS PRONOUNCED IN OPEN COURT ON 9/12/11. SD/- SD/- (A. MOHAN ALANKAMONY) (D.K. TYAGI) ACCOUNTANT MEMBER JUDICI AL MEMBER AHMEDABAD, MAHATA/- COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD 1.DATE OF DICTATION 28/11/2011. 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER.OTHER MEMBER 14/12/2011 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.. 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..