DCIT, Cir-6, Kolkata, Kolkata V. UCO Bank, Kolkata

ITA 1473/KOL/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 7983 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2010
• Appeal Filed By: Department
• Bench Allotted: B
• Assessment Year: 2003-2004
• Appeal Filed On: 01-08-2008
• Court: TRIBUNAL
• Department Lawyers: M K SINGHANIA
• Assessee Lawyers: A PODDAR
• Keywords: Bad and doubtful debts
• Section: 13

Judgement Text

INCOME TAX APPELLATE TRIBUNAL B BENCH, KOLKA TA (BEFORE SMT. DIVA SINGH, JM & SHRI B.K.HALDAR,AM) I.T.A.NO.1473/KOL/2008 ASSESSMENT YEAR : 2003-04 D.C.I.T., CIRCLE-6, -VS- U.CO. BANK KOLKATA, KOLKATA PAN : AAACU 3561 B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M.K.SINGHANIA RESPONDENT BY : SHRI A.PODDAR O R D E R PER SMT. DIVA SINGH, JUDICIAL MEMBER THIS APPEAL IS FILED BY THE REVENUE AGAINST THE OR DER DATED 27.05.2008 OF THE CIT- (A)-VI, KOLKATA RELATING TO ASSESSMENT YEAR 2003-04 WHERE IN THE FOLLOWING GROUNDS HAVE BEEN RAISED BY THE REVENUE : 1. THAT THE LD. CIT(A) HAS ERRED IN ALLOWING PROV ISION FOR BAD DEBTS, PROVISION FOR NPA AND PROVISION FOR STANDARD ASSET AS ALLOWABLE A DJUSTABLE ITEMS TO REDUCE BOOK PROFIT. 2. THAT THE APPELLANT CRAVES FOR LEAVE TO ADD, DELE TE OR MODIFY ANY OF THE GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING. 2. HOWEVER, AT THE TIME OF HEARING IT WAS SU BMITTED ON BEHALF OF THE ASSESSEE BY WAY OF WRITTEN PETITION THAT IN THE MEETING OF COMMITTEE O N DISPUTE HELD ON 12.05.2009 THE COD HAS DENIED PERMISSION TO THE DEPARTMENT TO PURSUE T HE PRESENT APPEAL. NECESSARY DOCUMENTS IN SUPPORT OF SUCH SUBMISSION ARE FOUND ATTACHED TO TH E LETTER FILED AND THE LD. AR INVITED ATTENTION TO ITEM 27 TO 30 APPEARING AT PAGE 13 SUB MITTED THAT PERMISSION HAS BEEN DENIED ON THE FOLLOWING GROUND :- THE COMMITTEE HEARD BOTH PARTIES TO THE DISPUTE. T HE REPRESENTATIVE OF CBDT STATED THAT THESE PROVISIONS HAVE BEEN MADE WITH A VIEW TO CATER TO THE REDUCTION IN VALUE OF ASSETS. THE MATTER HAS BEEN DECIDED AGAINST THE DEP ARTMENT BY THE SUPREME COURT IN HCL CONNET SYSTEMS AND SERVICE LTD. 305 ITR 409 HOL DING THAT THESE PROVISIONS ARE NOT IN THE NATURE OF ANY LIABILITY AND REPRESENTS M ERE DIMINUTIONS IN THE VALUE OF ASSETS. THIS DECISION HAS BEEN ACCEPTED BY THE DEPA RTMENT IN VIEW OF ABOVE THE COMMITTEE DECLINED PERMISSION TO CBDT TO PURSUE THE APPEAL. 3. ACCORDINGLY IN THE AFOREMENTIONED FACTS AN D CIRCUMSTANCES WHEREIN THE HIGH POWER COMMITTEE IN TERMS OF THE JUDGEMENT OF THE APEX COU RT IN THE CASE OF ONGC VS COLLECTOR OF 2 CENTRAL EXCISE REPORTED IN 104 CTR 31, HAS DECLINED TO PERMIT THE REVENUE TO PURSUE THE APPEAL. THE DEPARTMENTAL APPEAL IS DISMISSED IN LIM INE FOR WANT OF NECESSARY PERMISSION. 4. IN THE RESULT THE APPEAL OF THE REVENUE I S DISMISSED AS PER THE PRONOUNCEMENT MADE IN THE OPEN COURT IN THE PRESENCE OF THE PARTIES ON TH E DATE OF HEARING ITSELF I.E. 23.02.2010. SD/- SD/- (B.K.HALDAR) (DIVA SIN GH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 23.02.2010. COPY OF THE ORDER IS FORWARDED TO :- 1. U.CO BANK, 10, B.T.M.SARANI, KOLKATA-700001. 2. D.C.I.T.CIRCLE-6, KOLKATA. 3. C.I.T.(APPEALS)-VI, KOLKATA 4) C.I.T. KOLKA TA 5. D.R., ITAT, KOLKATA BY ORDER ASSISTANT REGISTRAR I.T.A.T., KOLKATA R.G./P.S. TRUE COPY