M/s Dinhams Corporation, Surendranagar V. The Deputy Commissioner of Income Tax, Surendranagar Circle, Surendranagar

ITA 1049/RJT/2010

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 7356 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 5 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 14-12-2011
• Assessment Year: misc
• Appeal Filed On: 12-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MK SINGH
• Keywords: Bad and doubtful debts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI T.K. SHARMA (JM) AND SHRI A.L. GEHLOT ( AM) I.T.A. NO.1049/RJT/2010. (ASSESSMENT YEAR 1989-90) M/S. DINHAMS CORPORATION, VS THE DY. C.I.T., MEHTA MARKET, SURENDRANAGAR. SURENDRANAGAR. (APPELLANT) (RESPONDENT) DATE OF HEARING : 14-12-2011 DATE OF PRONOUNCEMENT : 22-12-2011 REVENUE BY : SHRI M. K. SINGH, D.R. ASSESSEE BY : WRITTEN SUBMISSION.. O R D E R PER T.K. SHARMA (JM) THIS APPEAL BY THE ASSESSEE I S AGAINST THE ORDER DATED 17-05-2010 OF CIT (A)-CVI, AHMEDABAD CONFIRMI NG THE ADDITION OF RS.2,47,021/- MADE BY AO ON ACCOUNT OF BAD DEBTS FO R THE ASSESSMENT YEAR 1989-90. 2. AT THE TIME OF HEARING NONE WAS PRESENT. HOWEVE R, WRITTEN SUBMISSION WAS FILED WHEREIN, IT IS CONTENDED THAT ADDITION OF RS.2,47,021/- IN RESPECT OF BAD DEBT PERTAINING TO CURRENT YEAR BECAME BAD IN THE C URRENT YEAR IN SELF AND WRITTEN OFF AS IRRECOVERABLE. THE LD. CIT(A) RESTORED THIS ISSUE TO THE FILE OF AO FOR DECIDING AFRESH AS PER JUDGMENT OF HONBLE GUJARAT HIGH COURT IN THE CASE OF DHALL ENTERPRISES & ENGINEERS (P) LTD. VS. CIT REPO RTED IN 295 ITR 481 (GUJ). THIS ISSUE HAS NOW BEEN SET-ASIDE BY HONBLE SUPREM E COURT IN THE CASE OF T.R.F. LIMITED VS. CIT, RANCHI 323 ITR 397(SC). TO SUM-UP, IT WAS SUBMITTED THAT NOW THIS ISSUE BE DECIDED AS PER DECISION OF H ONBLE SUPREME COURT (SUPRA). 3. ON THE OTHER HAND, SHRI M. K. SINGH, D.R, APPEAR ED ON BEHALF OF THE REVENUE POINTED OUT THAT WHILE PASSING FRESH ORDER AS PER DIRECTION OF ITAT, ITA NO 94/RJT/2011. A.Y. 2006-07. 2 RAJKOT, AO HAS TO RESTRICT HIMSELF TO THE DECISION OF HONBLE GUJARAT HIGH COURT IN THE CASE OF DHALL ENTERPRISE AND ASSESSEE WAS NOT A BLE TO PROVE AS TO HOW THE DEBTS IN QUESTION IN RESPECT OF M/S. KANORIA CHEMI CAL HAS BECOME BAD DURING THE RELEVANT ASSESSMENT YEAR, THE DISALLOWANCE OF DAD DEBT WAS RIGHTLY MADE AND CONFIRMED BY LD. CIT(A) IN IMPUGNED ORDER. 4. RIVAL SUBMISSION WAS SUBMITTED. IT IS WELL SETT LED LAW THAT LAW LAID DOWN BY THE HONBLE SUPREME COURT IS BINDING ON ALL THE COURTS AND TRIBUNALS. ADMITTEDLY, THE ASSESSEE HAS WRITTEN OFF DEBT IN QU ESTION IN ITS BOOKS OF ACCOUNTS. THEREFORE, AS PER JUDGMENT OF HONBLE SUPREME COURT IN THE CASE OF T.R.F. LTD. VS. CIT (SUPRA), THE BAD DEBT CANNOT BE DISALLOWED. WE THEREFORE, FOLLOWING THE JUDGMENT OF HONBLE SUPREME COURT, DELETE THE DISAL LOWANCE OF RS.2,47,021/- IN RESPECT OF BAD DEBT MADE BY AO IN THE ASSESSMENT OR DER FOR THE ASSESSMENT YEAR UNDER APPEAL. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. THIS ORDER PRONOUNCED IN THE OPEN COURT ON 22-12- 2011. SD/- SD/- (A.L. GEHLOT) (T.K. SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER RAJKOT, DT :22-12- 2011 NVA/- COPY TO: 1. ASSESSEE 2. REVENUE 3. THE CIT(A)-XXI, AHMEDABAD 4. THE CIT-III, RAJKOT 5. THE DR, I.T.A.T., RAJKOT (TRUE COPY) BY ORDER ASSTT.REGISTRAR, ITAT, RAJKOT