The DCITA'bad, Circle-1, Ahmedabad V. Baeurer Infotech Ltd., Ahmedabad

ITA 1263/AHD/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 5608 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 16-07-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 22-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D S CHAUDHRY
• Keywords: Bad and doubtful debts
• Section: 271(1)(c); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI N.S.SAINI, ACCOUNTANT MEMBER DATE OF HEARING : DRAFTED ON: ITA NO.1263/AHD/2010 ASSESSMENT YEAR :2004-05 DY.COMMISSIONER OF INCOME TAX,CCIRCLE-1, 3 RD FLOOR, JITENDRA CHAMBERS, R.B.I. LANE, ASHRAM ROAD, AHMEDABAD. VS. M/S. BAEURER INFOTECH LTD., 8 TH FLOOR,HERITAGE BLDG., NR. VISNAGAR NAGRIK BANK LTD., USMANPURA, ASHRAMROAD, AHMEDABAD. PAN/GIR NO. : AABCB 5571 B (APPELLANT) .. (RESPONDENT) BY DEPARTMENT : SHRI D. S.CHAUDHRY, D.R. BY ASSESSEE : SHRI BANDISH S.SOPARKAR. O R D E R PER N.S.SAINI , ACCOUNTANT MEMBER :- THIS IS AN APPEAL FILED BY THE REVENUE AGAINST TH E ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-VIII, A HMEDABAD DATED 14-12-2009. 2. THE SOLE GROUND OF APPEAL RAISED BY THE REVENUE READS AS UNDER :- THE COMMISSIONER OF INCOME TAX(APPEALS) ERRED IN L AW AND ON FACTS IN DELETING THE PENALTY LEVIED UNDER SECTI ON 271(1)(C) OF RS.77,88,150/-. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS A LIMITED COMPANY AND THE ASSESSMENT FOR THE YEAR UNDER CONSI DERATION WAS - 2 - COMPLETED UNDER SECTION 143(3) OF THE ACT ON 28-2- 2006 DETERMINING THE TOTAL INCOME AT RS.2,20,78,110/- AS AGAINST RET URNED INCOME OF RS. NIL. THE LEARNED ASSESSING OFFICER WHILE COMPLETIN G THE ASSESSMENT MADE DISALLOWANCE OF BAD DEBT OF RS.2,11,92,243/- A ND INTEREST EXPENDITURE OF RS.28,30,735/- OUT OF TOTAL INTEREST EXPENDITURE OF RS.50,72,115/- CLAIMED BY THE ASSESSEE. ON APPEAL, BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED ASSESSING OFFICER, THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) CONFIRMED THE A CTION OF THE LEARNED ASSESSING OFFICER. 4. THEREAFTER, THE LEARNED ASSESSING OFFICER LEVIED PENALTY OF RS.77,88,150/- UNDER SECTION 271(1)(C) OF THE ACT F OR CONCEALMENT OF PARTICULARS OF INCOME/FURNISHING OF INACCURATE PART ICULARS OF INCOME ON THE DISALLOWANCE OF BAD DEBTS OF RS.2,11,92,243/ -. 5. IN APPEAL, THE LEARNED COMMISSIONER OF INCOME TA X (APPEALS) DELETED THE PENALTY BY OBSERVING THAT IN THE QUANTU M APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED COMMI SSIONER OF INCOME TAX(APPEALS) THE TRIBUNAL VIDE ITS ORDER DAT ED 29-8-2008 IN ITA NO.293/AHD/07 HAS DELETED THE DISALLOWANCE OF B AD DEBT AMOUNTING TO RS.2,11,92,243/- AND THEREFORE, THERE DOES NOT REMAIN A BASE LEFT IN THE ASSESSMENT ORDER FOR LEVYING OF IM PUGNED PENALTY. 6. AFTER HEARING THE RIVAL SUBMISSIONS AND PERUSING THE MATERIAL AVAILABLE IN THE RECORD, WE FIND THAT THE LEARNED A SSESSING OFFICER LEVIED PENALTY OF RS.77,88,150/- ON ACCOUNT OF DIS ALLOWANCE OF BAD DEBT CLAIMED BY THE ASSESSEE IN THE RETURN OF INCOM E ON THE GROUND THAT THE ASSESSEE HAS CONCEALED ITS INCOME/FURNISHE D INACCURATE - 3 - PARTICULARS OF INCOME. THE TRIBUNAL IN THE APPEAL FILED BY THE ASSESSEE DELETED THE DISALLOWANCE OF BAD DEBT OF RS .2,11,92,243/- CLAIMED BY THE ASSESSEE. THEREFORE, THE LEARNED COM MISSIONER OF INCOME TAX (APPEALS) DELETED THE PENALTY AS THE VER Y BASIS FOR LEVY OF PENALTY DID NOT SURVIVE AFTER PASSING OF THE ORD ER BY THE TRIBUNAL. THE LEARNED DEPARTMENTAL REPRESENTATIVE COULD NOT P OINT OUT ANY SPECIFIC ERROR IN THE ORDER OF THE CIT(A) HE ALSO C OULD NOT SHOW THAT THE ORDER OF THE TRIBUNAL DATED 29-2-2008 PASSED IN ITA NO.293/AHD/07 VACATING THE DISALLOWANCE OF BAD DEBT OF RS.2,11,92,243/- MADE BY THE LEARNED ASSESSING OFFI CER WAS REVERSED IN APPEAL BY A HIGHER FORUM. THEREFORE, W E DO NOT FIND ANY GOOD REASON TO INTERFERE WITH THE ORDER OF THE LEAR NED COMMISSIONER OF INCOME TAX (APPEALS) WHICH IS CONFIRMED AND THE GROUND OF APPEAL OF THE REVENUE IS DISMISSED. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER SIGNED, DATED AND PRONOUNCED IN THE COURT ON 23RD DAY OF JULY, 2010. SD/- SD/- (BHAVNESH SAINI) ( N.S. SAINI ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; ON THIS 23RD DAY OF JULY, 2010 PATKI COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT (APPEALS)- 5. THE DR, AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT.REGISTRAR), ITAT, AHMEDABAD - 4 - DATE INITIALS 1. DRAFT DICTATED ON 16-7-10 2. DRAFT PLACED BEFORE AUTHORITY 16-7-10 3. DRAFT PROPOSED & PLACED JM BEFORE THE SECOND MEMBER 4. DRAFT DISCUSSED/APPROVED --------------- ----- -------------- JM/AM BY SECOND MEMBER 5. APPROVED DRAFT COMES TO P.S ---------------- -- ------------------ 6. KEPT FOR PRONOUNCEMENT ON ---------------- --- ----------------- 7. FILE SENT TO THE BENCH CLERK ---------------- -------------------- 8. DATE ON WHICH FILE GOES TO THE ---------------- -------------------- 9. DATE OF DISPATCH OF ORDER ---------------- --- ------------------