The Assistant Commissioner Of IncomeTax Circle 2, RAJKOT-GUJARAT V. M/s R K Agency, RAJKOT-GUJARAT

ITA 1147/RJT/2010

• Counselvise Citation: 114724914 RSA 2010
• Duration Of Justice: 1 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 27-09-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 31-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MK SINGH
• Assessee Lawyers: MJ RANPURA
• Keywords: Bad and doubtful debts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI D.K. TYAGI (JM) AND SHRI A.L. GEHLOT (A M) I.T.A. NO.1147/RJT/2010 (ASSESSMENT YEAR 2004-05) ACIT, CIR.2 VS M/S R.K. AGENCY, RAJKOT RAJKOT DANAPITH, RAJKOT PAN : AAEFR0303E (APPELLANT) (RESPONDENT) DATE OF HEARING : 27-09-2011 DATE OF PRONOUNCEMENT : 30 -09-2011 APPELLANT BY : SHRI MK SINGH RESPONDENT BY: SHRI MJ RANPURA O R D E R PER BENCH THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-III, RAJKOT DATED 06-06-2010 FOR THE ASSESSMENT YEAR 200 4-05. 2. THE SOLE ISSUE AGITATED IN THE APPEAL PERTAINS T O DELETION OF DISALLOWANCE OF BAD DEBTS AMOUNTING TO RS.23,37,955. 3. THE ASSESSEE, CLAIMED, IN ITS RETURN OF INCOME, AN AMOUNT OF RS. 23,37,955 AS BAD DEBT. THE CASE OF THE ASSESSEE WA S THAT DESPITE SEVERAL ATTEMPTS, THE DEBTS COULD NOT BE RECOVERED. THE AS SESSING OFFICER DISALLOWED THE CLAIM ON THE GROUND THAT THE ASSESSEE DID NOT PROVE THAT THE DEBT IN FACT HAS BECOME BAD. ON APPEAL THE CIT(A) ALLOWED THE CLAIM OF THE ASSESSEE BY ITA NO.1147/RJT/2010 2 FOLLOWING THE JUDGMENT OF THE APEX COURT IN THE CAS E OF TRF LTD VS CIT 323 ITR 397 (SC) WHEREIN IT HAS BEEN HELD THAT AFTER 01 ST APRIL, 1989, IT IS NOT NECESSARY FOR THE ASSESSEE TO ESTABLISH THAT THE DEBT, IN FAC T, HAS BECOME IRRECOVERABLE AND THAT IT IS ENOUGH IF THE BAD DEBT IS WRITTEN OFF AS IRRECOVERABLE IN THE ACCOUNTS OF THE ASSESSEE. IN VIEW OF THIS SETTLED POSITION WE DO NOT SEE ANY MERIT IN THE APPEAL FILED BY THE REVENUE. THE APPEAL FILED BY T HE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30-09-2011. SD/- SD/- (D.K. TYAGI) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTANT MEMBER RAJKOT, DT : 30 TH SEPTEMBER, 2011 PK/- COPY TO: 1. ASSESSEE 2. REVENUE 3. THE CIT(A)-III, RAJKOT 4. THE CIT-II, RAJKOT 5. THE DR, I.T.A.T., RAJKOT (TRUE COPY) BY ORDER ASSTT.REGISTRAR, ITAT, RAJKOT