Peeveear Electricals, Kolkata V. ACIT, CIR-26, KOLKATA, Kolkata

ITA 1137/KOL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1612 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 24-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bad and doubtful debts; Revised return
• Section: 143(3)

Judgement Text

1 ITA NO. 1137/KOL/2016 ASSESSMENT YEAR: 2010-2011 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA D BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NO. 1137/KOL./2016 ASSESSMENT YEAR: 2010-2011 PEEVEEAR ELECTRICALS,.............................. .......................APPELLANT C/O. S.L. KOCHAR, ADVOCATE, 86, CANNING STREET, KOLKATA-700 001 [PAN: AAJFP 0303 L] -VS.- ASSISTANT COMMISSIONER OF INCOME TAX,............ ...RESPONDENT CIRCLE-26, KOLKATA, 2, GARIAHAT ROAD (SOUTH), KOLKATA-700 068 APPEARANCES BY: SHRI ANIL KOCHAR, ADVOCATE, FOR THE ASSESSEE SHRI ARINDAM BHATTACHARJEE, ADDL. CIT, D.R., FOR TH E DEPARTMENT DATE OF CONCLUDING THE HEARING : DECEMBER 13, 2017 DATE OF PRONOUNCING THE ORDER : JANUARY 31, 2018 O R D E R PER SHRI P.M. JAGTAP, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-7, KOLKATA DAT ED 09.05.2016 AND THE ONLY ISSUE ARISING OUT OF THE SAME RELATES TO T HE ADDITION OF RS.4,89,606/- MADE BY THE LD. CIT(APPEALS) TO THE T OTAL INCOME OF THE ASSESSEE ON ACCOUNT OF DISALLOWANCE OF ITS CLAIM FO R BAD DEBTS WRITTEN OFF. 2. THE ASSESSEE IN THE PRESENT CASE IS A PARTNERSHI P FIRM, WHICH IS ENGAGED IN THE BUSINESS OF DEALING IN CABLE AND ELE CTRICAL ARTICLES. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION W AS ORIGINALLY FILED BY IT ON 30.09.2010 DECLARING TOTAL INCOME OF RS.84,90 ,910/-. THEREAFTER A REVISED RETURN WAS FILED BY THE ASSESSEE ON 07.09.2 012 DECLARING TOTAL INCOME OF RS.25,14,194/-. A LETTER DATED 04.12.2012 WAS ALSO FILED BY THE 2 ITA NO. 1137/KOL/2016 ASSESSMENT YEAR: 2010-2011 ASSESESE STATING THAT THE ORIGINAL RETURN OF INCOME FILED FOR THE YEAR UNDER CONSIDERATION WAS REQUIRED TO BE REVISED BECA USE THE LIABILITY AMOUNTING TO RS.59,76,714/- WRITTEN BACK WAS OFFERE D TO TAX FOR THE YEAR UNDER CONSIDERATION IN THE ORIGINAL RETURN BUT THE SAME HAVING BEEN BROUGHT TO TAX BY THE ASSESSING OFFICER IN A.Y. 200 9-10 VIDE THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3), THE S AME WAS TO BE DEDUCTED FROM THE TOTAL INCOME OF THE YEAR UNDER CO NSIDERATION AS DECLARED IN THE ORIGINAL RETURN. THIS CLAIM OF THE ASSESSEE WAS NOT ACCEPTED BY THE ASSESSING OFFICER AND HE PROCEEDED TO COMPLETE THE ASSESSMENT UNDER SECTION 143(3) VIDE AN ORDER DATED 28.03.2013 WITH REFERENCE TO THE RETURN ORIGINALLY FILED BY THE ASS ESSEE DECLARING TOTAL INCOME OF RS.84,90,910/-. 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 143(3), AN APPEAL WAS FILED BY THE ASSESSEE BEFORE THE LD. CIT(APPEALS) AND SINCE THE LD. CIT(APPEALS) FOUND MERIT IN THE S UBMISSIONS MADE BY THE ASSESSEE, HE DIRECTED THE ASSESSING OFFICER TO REDUCE THE AMOUNT OF RS.59,76,714/- FROM THE TOTAL INCOME OF THE ASSESSE E FOR THE YEAR UNDER CONSIDERATION AS THE SAME HAD ALREADY BEEN CONSIDER ED BY THE ASSESSING OFFICER WHILE COMPUTING THE TOTAL INCOME OF THE ASS ESSEE FOR THE IMMEDIATELY PRECEDING YEAR, I.E. A.Y. 2009-10. HE, HOWEVER, FOUND FROM THE SUBMISSIONS MADE BY THE ASSESSEE DURING THE COU RSE OF APPELLATE PROCEEDINGS BEFORE HIM THAT THE AMOUNT OF LIABILITI ES SURRENDERED BY THE ASSESSEE WAS NET OFF THE SUNDRY DEBTORS WRITTEN OFF AMOUNTING TO RS.4,89,606/-. IN THIS REGARD, THE ASSESSEE WAS CAL LED UPON BY THE LD. CIT(APPEALS) TO FURNISH THE DETAILS OF INCOME OFFER ED BY IT ON ACCOUNT OF SUCH BAD DEBTS IN THE YEAR UNDER CONSIDERATION OR A NY EARLIER YEAR. THE ASSESSEE, HOWEVER, FAILED TO FURNISH THE SAID DETAI LS AND KEEPING IN VIEW THIS FAILURE, THE LD. CIT(APPEALS) DIRECTED THE ASS ESSING OFFICER TO MAKE THE ADDITION OF RS.4,89,606/- TO THE TOTAL INCOME O F THE ASSESSEE ON ACCOUNT OF DISALLOWANCE OF ITS CLAIM FOR THE BAD DE BTS WRITTEN OFF. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS) ON T HIS ISSUE, THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 3 ITA NO. 1137/KOL/2016 ASSESSMENT YEAR: 2010-2011 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE CONTENTI ON RAISED BY THE LD. COUNSEL FOR THE ASSESSEE BEFORE US IS THAT PROPER A ND SUFFICIENT OPPORTUNITY WAS NOT AFFORDED BY THE LD. CIT(APPEALS ) TO FURNISH THE RELEVANT DETAILS OF INCOME DECLARED BY THE ASSESSEE ON ACCOUNT OF BAD DEBTS WRITTEN OFF AND THE ASSESEE, THEREFORE, COULD NOT FURNISH THE SAID DETAILS IN SUPPORT OF ITS CLAIM ON THE ISSUE OF DED UCTION ON ACCOUNT OF BAD DEBTS WRITTEN OFF, WHICH WAS RAISED BY THE LD. CIT( APPEALS) FOR THE FIRST TIME DURING THE COURSE OF APPELLATE PROCEEDINGS BEF ORE HIM. HE HAS URGED THAT SUCH OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE BY SENDING THE MATTER BACK TO THE ASSESSING OFFICER FOR NECESSARY VERIFIC ATION. SINCE THE LD. D.R. HAS ALSO NOT RAISED ANY MATERIAL CONTENTION IN THIS REGARD, WE SET ASIDE THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) ON THE I SSUE OF ASSESSEES CLAIM FOR BAD DEBTS WRITTEN OFF AND RESTORE THE MAT TER TO THE FILE OF THE ASSESSING OFFICER FOR DECIDING THE SAME AFRESH ON M ERIT IN ACCORDANCE WITH LAW AFTER GIVING PROPER AND SUFFICIENT OPPORTU NITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST DAY OF JANUARY, 2018. SD/- SD/- (S.S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER KOLKATA, THE 31 ST DAY OF JANUARY, 2018 COPIES TO : (1) PEEVEEAR ELECTRICALS, C/O. S.L. KOCHAR, ADVOCATE, 86, CANNING STREET, KOLKATA-700 001 2) ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-26, KOLKATA, 2, GARIAHAT ROAD (SOUTH), KOLKATA-700 068 (3) CIT(APPEALS)-7, KOLKATA, 4 ITA NO. 1137/KOL/2016 ASSESSMENT YEAR: 2010-2011 (4) CIT- , KOLKATA, (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY, HEAD OF OFFICE/DDO, INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.