Architects Bureau, New Delhi V. ACIT, Circle- 61(1), New Delhi

ITA 1534/DEL/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 4833 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 05-03-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Bad and doubtful debts
• Section: 28

Judgement Text

ITA NOS.-1534/DE/2018 ARCHITECT S BUREAU PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: A: NEW DELHI) (THROUGH VIDEO CONFERENCING) BEFORE MS. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 1534/DEL/2018 ( ASSESSMENT YEAR: 2014-15) M/S. ARCHITECTS BUREAU13, PALAM MARG, VASANT VIHAR, NEW DELHI-110057 VS . A CIT, CIRCLE-61(1), NEW DELHI-110002 APPELLANT RESPONDENT PAN NO: AALFA6462H ASSESSEE BY : SHRI ROHIT GARG, ADV. REVENUE BY : SHRI SATPAL GULATI, CIT- DR PER P. MADHAVI DEVI, JM (A) THIS APPEAL BY THE ASSESSEE IS FILED AGAINST THE O RDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-20, NEW DELHI, [LD. CIT(A), FOR SHORT], DATED 19.01.2018 FOR ASSESSMENT YEAR 2014- 15. GROUNDS TAKEN IN THIS APPEAL OF ASSESSEE ARE AS UNDER: 1. THAT THE CIT(APPEALS) ERRED ON FACTS AND IN LA W IN CONFIRMING THE ADDITION OF RS.8,50,374 UNDER SECTION 36(2) OF THE INCOME TAX ACT, 1961 (THE ACT) WITHOUT APPRECIATING THAT THE SAME R EPRESENTS WRITE OFF OF BUSINESS LOAN/ADVANCES/SECURITY DEPOSITS WHICH I S ALLOWABLE AS BUSINESS LOSS UNDER SECTION 28 OF THE ACT. 1. THAT THE CIT(APPEALS) ERRED ON FACTS AND IN LAW IN CONFIRMING THE ADDITION OF RS.31,25,000 BEING AMOUNT WITHHELD BY C ONTRACTEE (DDA) ON ITA NOS.-1534/DE/2018 ARCHITECT S BUREAU PAGE 2 OF 4 ACCOUNT OF ALLEGED NONPERFORMANCE OF THE CONTRACT W ITHOUT APPRECIATING THAT THE SAME IS ALLOWABLE AS BAD DEBTS IN TERMS OF SECTION 36(L)(VII) OF THE ACT. 2.1 THAT THE CIT (APPEALS) ERRED ON FACTS AND IN LA W IN NOT APPRECIATING THAT THE ASSESSING OFFICER ONLY DISPUTED THE YEAR O F CLAIM OF ABOVE DEBTS (WHICH IS LEGALLY IMPERMISSIBLE); AND DID NOT DISPU TE THE ALLOWABLITY OF THE ABOVE BED DEBTS PER-SE. 3. THAT THE CIT (APPEALS) ERRED ON FACTS AND IN LAW IN CONFIRMING THE AD- HOC ADDITION OF VEHICLE MAINTENANCE AND OTHER EXPEN DITURE TO THE EXTENT OF RS. 19,816 ALLEGING THE SAME TO BE OF PERSONAL N ATURE WITHOUT APPRECIATING THAT THE ASSESSING OFFICER HAS NOT POI NTED OUT ANY DEFECT IN THE BOOKS OF ACCOUNTS PRODUCED BY THE APPELLANT. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR VARY FROM THE ABOVE GROUNDS OF APPEAL AT OR BEFORE THE TIME OF HEARING. (B) AT THE TIME OF HEARING, AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE INFORMED US THAT THE ASSESSEE HAS OPTED TO SETTLE T HE AFOREMENTIONED APPEALS UNDER VIVAD SE VISHWAS SCHEME, 2020 (VSVS, FOR SHORT) AND THA T THE ASSESSEE HAS ALREADY FILED THE RELEVANT FORMS. THE LD. COUNSEL FOR ASSESSEE ALS O DREW OUR ATTENTION TO LETTER DATED 12 TH JANUARY, 2021 FILED IN INCOME TAX APPELLATE TRIBUNA L (ITAT, FOR SHORT) GIVING INTIMATION FOR THE SAME, AND REQUESTING TO WITHDRAW THIS APPEA L. (B.1) AT THE TIME OF HEARING BEFORE US, THE LD. COUNSEL F OR ASSESSEE AS WELL AS THE LEARNED SENIOR DEPARTMENTAL REPRESENTATIVE (LD. CI T- DR, FOR SHORT) SUBMITTED BEFORE US THAT THIS APPEAL MAY BE TREATED AS WITHDRAWN AND MAY BE DISMISSED ON ACCOUNT OF THE AFORESAID VSVS. AFTER DUE CONSIDERATION, AND IN V IEW OF THE FOREGOING; AND AS BOTH SIDES HAVE AGREED TO THIS; WE ARE OF THE VIEW THAT THIS A PPEAL HAS BECOME INFRUCTUOUS, AND TREAT THIS APPEAL AS WITHDRAWN ON ACCOUNT OF THE AFORESAI D VSVS. ACCORDINGLY, THIS APPEAL HAVING BECOME INFRUCTUOUS, IS HEREBY DISMISSED AS W ITHDRAWN, SUBJECT TO SETTLEMENT OF THE DISPUTES IN THE APPEALS UNDER THE AFORESAID VSV S. ITA NOS.-1534/DE/2018 ARCHITECT S BUREAU PAGE 3 OF 4 (C) BEFORE WE PART, WE HEREBY CLARIFY, BY WAY OF AB UNDANT CAUTION, THAT IF FOR SOME REASON THE DISPUTES UNDER THESE APPEALS BEFORE US ARE NOT SETTLED UNDER THE AFORESAID VSVS, THEN THE ASSESSEE WILL BE AT LIBERTY TO APPRO ACH ITAT FOR RESTORATION OF THIS APPEAL, IN ACCORDANCE WITH LAW. (D) IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED . THIS ORDER HAS BEEN ALREADY PRONOUNCED ON 10 TH FEBRUARY, 2021 IN OPEN COURT, IN THE PRESENCE OF REPRESENTATIVES OF BOTH SIDES; A FTER CONCLUSION OF THE HEARING. SD/- SD/- (ANADEE NATH MISSHRA) (P . MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 10/02/2021 *BINITA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI ITA NOS.-1534/DE/2018 ARCHITECT S BUREAU PAGE 4 OF 4