ACIT CIR 6(3), MUMBAI V. LACTOSE (INDIA) LTD, MUMBAI

ITA 1566/MUM/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3759 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 06-03-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S T BIDARI
• Keywords: Bad and doubtful debts

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH A, MUMBAI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER. I.T.A. NO. 1566/MUM/2009. ASSESSMENT YEAR : 2005-06. ASSTT. COMMISSIONER OF INCOME-TAX, M/S LACTOSE (INDIA) LTD. CIRCLE-6(3), MUMBAI. VS. 211, LAXMI PLAZA INDUSTRIAL ESTATE, OFF NEW LINK ROAD, A NDHERI (WEST), MUMBAI 400053. PAN AAACL2595G . APPELLANT. RESPONDENT. APPELLANT BY : SHRI S.T. BIDARI. R ESPONDENT BY : SHRI VIJAY MEHTA. O R D E R PER J. SUDHAKAR REDDY, A.M. : THIS IS AN APPEAL FILED BY THE REVENUE DIRECTED A GAINST THE ORDER OF THE CIT(APPEALS)-VI, MUMBAI DATED 19-12-2008. 2. THE ASSESSEE IS A COMPANY AND IS IN THE BUSINES S OF ASSEMBLING AND MANUFACTURING OF PLANT AND MACHINERY FOR MANUFACTUR ING OF LACTOSE. THE REVENUES APPEAL IS ON THE FOLLOWING GROUND : 2 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , LD. CIT(A) ERRED IN DELETING THE DISALLOWANCE OF RS.13,99,670/- ON ACCO UNT OF BAD DEBTS, EVEN THOUGH THE ASSESSEE COULD NOT BRING ANY EVIDENCE ON RECORD THAT THESE DEBTS WERE IN THE NATURE OF BAD DEBTS. 3. THE AO DISALLOWED THE CLAIM OF THE ASSESSEE FOR BAD DEBTS ON THE GROUND THAT THE ASSESSEE HAS NOT PRODUCED ANY EVIDE NCE THAT THE DEBTS HAVE BECOME BAD. THE FIRST APPELLATE AUTHORITY APPLIED THE JUR ISDICTIONAL HIGH COURT DECISION IN THE CASE OF CIT VS. STAR CHEMICALS IN ITA NO. 1915 OF 2007 DATED 27-2-2008 AND HELD THAT UNDER THE CHANGED LAW, THE ASSESSEE IS NO T REQUIRED TO GIVE DEMONSTRATIVE PROOF THAT THE DEBT HAS BECOME BAD. NOW THE ISSUE I S COVERED IN FAVOUR OF THE ASSESEE BY THE DECISION OF THE HONBLE SUPREME COUR T IN THE CASE OF TRF LTD. VS. CIT 323 ITR 397. RESPECTFULLY FOLLOWING THE SAME, W E UPHOLD THE ORDER OF THE FIRST APPELLATE AUTHORITY. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH NOV. , 2010. SD/- SD/- (V. DURGA RAO) (J. SUDHAKAR REDDY) JUDICIAL MEMBER. ACCO UNTANT MEMBER MUMBAI, DATED: 10 TH OCT., 2010. WAKODE 3 COPY TO : 1. APPELLANT 2. RESPONDENT 3. C.I.T. 4. CIT(A) 5. DR, A-BENCH (TRUE COPY) BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI B ENCHES, M UMBAI.