ADA CELLWORKS WIRELESS ENGG. P. LTD., MUMBAI V. DCIT- 15(1)(1), MUMBAI

ITA 1494/MUM/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 1321 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 13-03-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Business expenditure; Bad and doubtful debts
• Section: 28; 37(1); 13

Judgement Text

ITA NO. 1494/MUM/2020 ASSESSMENT YEAR: 2015 - 16 PAGE 1 OF 3 INCOME TAX APPELLATE TRIBUNAL MUMBAI A BENCH, MUMBAI [CORAM: PRAMOD KUMAR, VICE PRESIDENT, AND, MAHAVIR SINGH, VICE PRESIDENT] ITA NO.: 1494MUM/2020 ASSESSMENT YEARS: 2015 - 16 ADA CELLWORKS WIRELESS ENGG PVT. LTD. .. APPELLANT GLOBAL VISION, ELECTRONIC SADAN II, MIDC TTC INDUSTRIAL AREA, MAHAPE, NAVI MUMBAI 400710 [PAN: A AECA7029E] VS. DEPUTY COMMISSIONER OF INCOME TAX - 15(1)(1) .RESPONDEN MUMBAI 400020. APPEARANCES: MANOJ KUMAR JAIN FOR THE APPELLANT SUNIL DESHPANDE FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING: : NOVEMBER 2 7 TH , 2020 DATE OF PRONOUNCEMENT : NOVEMBER 2 7 TH , 2020 O R D E R PER PRAMOD KUMAR, VP: 1. BY WAY OF THIS APPEAL, THE ASSESSEE APPELLANT HAS CALLED INTO QUESTION CORRECTNESS OF THE ORDER DATED 11 TH JANUARY 2019, PASSED BY THE LEARNED COMMISSIONER (APPEALS) IN THE MATTER OF ASSESSMENT UNDER SECTION 143 OF THE INCOME TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2015 - 16 . 2. GRIEVANCE OF THE ASSESSEE APPELLANT IS AS FOLLOWS: GROUND I: DISALLOWANCE OF PROVISION FOR TRADE RECEIVABLE AMOUNTING TO RS. 7,09,55,966/ - UND ER SECTION 36 (1)(VII) OF THE ACT: 1 . ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) E RRED IN DISALLOWING THE PROVISION MADE FOR TRADE RECEIVABLES AMOUNTING TO RS. ITA NO. 1494/MUM/2020 ASSESSMENT YEAR: 2015 - 16 PAGE 2 OF 3 7,09,55,966/ - UNDER SECTION 36(1 )(VII) OF THE ACT, ON THE ALLEGED GROUND THAT IT IS NOT ACTUAL BAD DEBTS. 2 . THE APPELLANT PRAYS THAT THE DISALLOWANCE AMOUNTING TO RS. 7,09,55,966/ - , IN RESPECT OF PROVISION FOR TRADE RECEIVABLES BE DELETED. WITHOUT PREJUDICE TO GROUND I ABOVE. GROUND II: DISALLOWANCE OF PROVISION FOR TRAD E RECEIVABLE AMOUNTING TO RS. 7,09,55,966/ - UNDER SECTION 37(1) OR SECTION 28 OF THE ACT: 1 . ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DISALLOWING THE PROVISION MADE FOR TRADE RECEIVABLES AMOUNTING TO RS. 7,09,55,966/ - UNDER SECTION 37(1) OF THE ACT. 2 . THE APPELLANT PRAYS THAT IF THE PROVISION FOR TRADE RECEIVABLES I S NOT ALLOWED UNDER SECTION 36(1 )(VII) OF THE ACT, THEN THE SAME SHALL BE ALLOWED AS A BUSINESS EXPENDITURE UNDER SECTION 37(1) OR AS A BUSINESS L OSS UNDER SECTION 28 OF THE ACT. WITHOUT PREJUDICE TO GROUND I AND GROUND II ABOVE, GROUND III : ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE AND IN LAW IF THE SAID EXPENDITURE IS NOT ALLOWED IN THE CURRENT YEAR, APPELLANT PRAYS THAT THE A.O. BE DIRECTED TO ALLOW THE EXPENDITURE IN THE YEAR IN WHICH THE INDIVIDUAL ACCOUNT OF THE DEBTOR ARE SQUARED OFF. 3. THE APPEAL W AS CALLED FOR THE HEARING. OUR ATTENTION WAS INVITED TO THE LETTER DATED 13 TH AUGUST, 2020 FILED BY THE APPELLANT SEEKING PERMISSION TO WITHDRAW THIS APPEAL. 4. THE LD. DR DOES NOT OPPOSE TO THE PRAYERS SO MADE BY THE ASSESSEE. 5. IN VIEW OF THE ABOVE POSITION, WE DEEM IT FIT AND PROPER TO PERMIT TO WITHDRAW THE AFORESAID APPEAL. 6. ACCORDINGLY, THIS APPEAL IS DISMISSED AS WITHDRAWN. PRONOUNCED IN THE OPEN COURT TODAY ON THE 27 TH NOVEMBER , 2020 SD/ SD/ - MAHAVIR SINGH PRAMOD KUMAR (VICE PRESIDENT) (VICE PRESIDENT) MUMBAI, DATED THE 27 TH DAY OF NOVEMBER, 2020 ITA NO. 1494/MUM/2020 ASSESSMENT YEAR: 2015 - 16 PAGE 3 OF 3 NISHANT VERMA, SR.PS COPIES TO: (1) THE APPLICANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, MUMBAI