HUNGAMA DIGITAL MEDIA ENTERTAINMENT P.LTD, MUMBAI V. ADDLCIT RG 7(3), MUMBAI

ITA 1522/MUM/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 88305 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 23-12-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 25-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JEETENDRA KUMAR
• Assessee Lawyers: S C TIWARI; PRIYANKA J MARU
• Keywords: Bad and doubtful debts

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL H , BENCH MUMBAI , BEFORE SHRI I. P. BANSAL, J M & SHRI R.C.SHARMA , A M ITA NO. 1522 / MUM/20 1 3 ( ASSESSMENT YEAR : 200 9 - 10 ) HUNGAMA DIGITAL MEDIA ENTERTAINMENT PVT. LTD. , F - 1, 1 ST FLOOR LAXMI WOODEN MILLS ESTATE, SHAKTI MILL LANE, OFF. DR. E.MOSES RD. MAHALAXMI, MUMBAI - 400 011 VS. ADCIT, RANGE - 7(3), M UMBAI - 400020 PAN/GIR NO. : A AACV 7289 H ( APPELLANT ) .. ( RESPONDENT ) /ASSESSEE BY : SHRI S.C.TIWARI & MS. PRIYANKA J.MARU /REVENUE BY : SHRI JEETENDRA KUMAR DATE OF HEARING : 5 TH FEBRUARY , 201 5 DATE OF PRONOUNCEMENT 2 0 T H FEBRUARY,2015 O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), DATED 3 - 12 - 2012 FOR T HE ASSESSMENT YEAR 2009 - 10 , IN THE MATTER OF ORDER PASSED U/S.143(3) OF THE ACT . 2. THE ASSESSEE IS AGGRIEVED BY THE ACTION OF CIT(A) FOR CONFIRMING THE ORDER OF AO FOR DISALLOWING BAD DEBTS WRITTEN OFF AMOUNTING TO RS. 13,27,868/ - U/S.36(1)(III). 3. WE HA VE CONSIDERED RIVAL CONTENTIONS AND FOUND FROM THE RECORD THAT THE AMOUNT OF BAD DEBTS WRITTEN OFF WERE IN RESPECT OF SALES EFFECTED ON CREDIT AND PAYMENT OF WHICH WAS FOUND TO BE NON - RECEIVED NOR ITA NO. 1522 / 1 3 2 RECEIVABLE IN FUTURE. THE CIT(A) CONFIRMED THE ACTION OF AO BY OBSERVING THAT ASSESSEE HAD NOT DEMONSTRATED THAT PARTIES HAD EITHER REFUSED TO MAKE PAYMENT OR THE FINANCIAL POSITION OF THE PARTY HAD BECOME BAD. THE ISSUE UNDER CONSIDERATION IS SQUARELY COVERED BY THE DECISION OF HONBLE SUPREME COURT IN THE CASE O F T.R.F. LIMITED, 323 ITR 397 , WHEREIN IT WAS HELD THAT IF THE DEBT HAD BEEN WRITTEN OFF IN THE BOOKS OF THE ASSESSEE, THEN NO DISALLOWANCE FOR BAD DEBT IS TO BE MADE U/S.36(1)(VII) OF THE ACT. IN THE INSTANT CASE, WE FOUND THAT THE AMOUNT OF BAD DEBTS WAS JUST 0.08% OF THE TURNOVER AND RELEVANT SALES HAD BEEN ACCOUNTED FOR AS INCOME . ACCORDINGLY, DISALLOWANCE OF CLAIM BY LOWER AUTHORITIES ARE DEVOID OF ANY MERIT, WE , THEREFORE, DIRECT THE AO TO ALLOW THE CLAIM OF BAD DEBTS. 4 . IN THE RESULT, AP PEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 20/02 201 5 . SD/ - SD/ - ( ) ( I. P. BANSAL ) ( ) ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 20/02 /201 5 /PKM , PS COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( ASSTT. REGISTRAR) / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A), MUMBAI. 4. / CIT 5. / DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// ITA NO. 1522 / 1 3 3