Niya Finstock Pvt.Ltd., Ahmedabad V. The Dy.CIT.,Circle-5, Ahmedabad

ITA 1167/AHD/2011

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1254 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 07-10-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 20-04-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Bad and doubtful debts
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SHR I S. S. GODARA , JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER NIYA FINSTOCK PVT. LTD, NI RMA HOUSE, ASHRAM ROAD, AHMEDABAD, PAN: AA A CN520D (APPELLANT) VS DY. COMMISSIONER OF INCOME TAX, CIRCLE - 5, AHMEDABAD (RESPONDENT) REVENUE BY : S H RI RAJDEEP SINGH , SR. D . R. ASSESSEE BY: S H RI HIMANSHU SHAH , A.R. DATE OF HEARING : 07 - 10 - 2 015 DATE OF PRONOUNCEMENT : 09 - 10 - 2 015 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THIS ASSESSEE S APPEAL FOR A.Y. 2006 - 07 , AR ISES FROM ORDER OF THE CIT(A) - XI, AHMEDABAD DATED 28 - 03 - 2011 IN APPEAL NO. CIT(A) - XI/693/08 - 09 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T A NO . 1167 / A HD/20 11 A SSESSMENT YEAR 200 6 - 07 I .T.A NO.1167 /AHD/20 11 A.Y. 2006 - 07 PAGE NO NIYA FINSTOCK PVT. LTD VS. DCIT 2 2 . THE ASSESSEE S SOLE SUBST ANTIVE GROUND CHALLENGES THE LOWER APPELLATE ORDER DISALLOWING ITS BAD DEBTS CLAIM OF RS. 44,48,514/ - RELATING TO M/S SUNRISE FINCAP LTD. A PERUSAL OF THE CASE FILE REVEALS THAT THE ASSESSEE RAISED THIS BAD DEBTS PLEA AS AN ADDITIONAL GROUND IN THE LOWER APPELLATE PROCEEDINGS. IT ENCLOSED I T S RELEVANT ACCOUNTS AS WELL. ITS CASE WAS THAT THIS CLAIM STOOD ALLOWED IN ASSESSMENT YEAR 2005 - 06. THE LD. CIT REVISED THE SAID ASSESSMENT U/S. 263 BY OBSERVING THAT THE SAME WAS WRONGLY ALLOWED THEREIN. THE ASSE SSEE STATED TO HAVE FILED AN APPEAL BEFORE THE TRIBUNAL. IT ACCORDINGLY PLEADED THAT THIS BAD DEBTS CLAIM BE ALLOWED IN THE IMPUGNED ASSESSMENT YEAR I . E. 2006 - 07. THE LD. CIT(A) HAS DECLINED THIS PLEA ON THE GROUND THAT THIS BAD DEBTS ISSUE DOES NOT ARI SE FROM THE ASSESSMENT ORDER IN QUESTION AND ASSESSEE S APPEAL IN SECTION 263 PROCEEDINGS IS STATED TO BE PENDING BEFORE THE TRIBUNAL. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE CASE FILE. THE ASSESSEE FILES BEFORE US A COPY OF THE CIT(A) S ORD ER IN ASSESSMENT YEAR 2005 - 06 DATED 23 - 03 - 2012 ARISING FROM CONSEQUENTIAL ORDER DATED 15 - 12 - 2010 PASSED BY THE ASSESSING OFFICER IN FURTHERANCE TO THE CIT S DIRECTIONS U/S. 26 3 OF THE ACT. IT EMANATES THAT THE ASSESSEE S BAD DEBTS CLAIMS OF RS. 44,48,514/ - STANDS ACCEPTED THEREIN. THE REVENUE APPEARS TO HAVE FILED ITA 1207/AHD/2012 WITHOUT CHALLENGING THIS BAD DEBTS CLAIM. NO EXCEPTION IS POINTED OUT EVEN IN THE COURSE OF HEARING AS WELL. THE ASSESSEE SUBMITS IN THIS I .T.A NO.1167 /AHD/20 11 A.Y. 2006 - 07 PAGE NO NIYA FINSTOCK PVT. LTD VS. DCIT 3 FACTUAL BACKDROP THAT ITS SOLE SUBST ANTIVE GROUND HAS BEEN RENDERED INFRUCTUOUS. 4. WE ACC O RDING LY TAKE NOTE OF ASSESSEE S ABOVE S TATEMENT AND DISMISS THE INSTANT APPEAL AS HAVING BEEN RENDERED INFRUCTUOUS. ORDERED ACCORDINGLY. ORDER PR ONOUNCED IN THE OPEN C OURT ON 09 - 10 - 2015 SD/ - SD/ - ( MANISH BORAD ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 09 /10 /2015 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,