The DCIT, Circle-4, Ahmedabad V. Matrix Logistics Limited, Ahmedabad

ITA 1594/AHD/2008

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 9956 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 14-09-2010
• Assessment Year: 1999-2000
• Appeal Filed On: 08-05-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bad and doubtful debts; Set aside
• Section: 143(3); 147; 263; 63

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL : A BENCH : AHMEDABA D (BEFORE HON'BLE SHRI T.K. SHARMA, J.M. & HONBLE S HRI N.S. SAINI, A.M.) I.T.A. NO. 1594/AHD./2008 (ASSESSMENT YEAR : 1999- 2000) & I.T.A. NO. 1590/AHD/2008 (ASSESSMENT YEAR : 2 000-2001) DEPUTY COMMISSIONER OF INCOME TAX, -VS.- MATRIX LOGISTICS LTD., AHMEDABAD CIRCLE-4, AHMEDABAD (PAN : AAACG 7743 B) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANIL KUMAR, D.R. RESPONDENT BY : SHRI BANDISH SOPARKAR O R D E R PER BENCH : THESE TWO APPEALS FILED BY THE REVENUE ARE AGAINST TWO SEPARATE ORDERS, BOTH DATED 12.02.2008 OF LEARNED COMMISSIONER OF INCOME TAX (A PPEALS)-VIII, AHMEDABAD CANCELLING THE ORDER UNDER SECTION 143(3) READ WITH SECTION 263 OF THE INCOME TAX ACT DATED 28.12.2007 OF DCIT, CIRCLE-4, AHMEDABAD FOR THE ASSESSMENT YEARS 1999-2000 & 2000-01. 2. BRIEFLY STATED THE FACTS ARE THAT THE ASSESSING OFFICER FRAMED THE ASSESSMENT UNDER SECTION 143(3) READ WITH SECTION 147 FOR BOTH THE ASSESSMEN T YEARS ON 16.12.2004. IN THESE ASSESSMENT ORDERS, THE ASSESSING OFFICER ALLOWED BAD DEBTS AMO UNTING TO RS.34,90,00,000/- AND RS.28,98,00,000/- FOR THE ASSESSMENT YEARS 1999-200 0 AND 2000-01 RESPECTIVELY. SUBSEQUENTLY, THE LD. COMMISSIONER OF INCOME TAX, AHMEDABAD-II, A HMEDABAD VIDE TWO SEPARATE ORDERS UNDER SECTION 263, BOTH DATED 31.01.2007 FOR THE ASSESSME NT YEARS 1999-2000 AND 2000-01 TOOK THE VIEW THAT THE ASSESSING OFFICER IN ASSESSMENT ORDER DATED 16.12.2004 UNDER SECTION 143(3) READ WITH SECTION 147 OF THE ACT WRONGLY ALLOWED THE BAD DEBTS AMOUNTING TO RS.34,90,00,000/- FOR THE ASSESSMENT YEAR 1999-2000 AND RS.28,98,00,000/- FOR THE ASSESSMENT YEAR 2000-01. HE 2 ITA NOS . 1594 & 1590/AHD/2008 ACCORDINGLY VIDE TWO SEPARATE ORDERS UNDER SECTION 263 BOTH DATED 31.01.2007 SET ASIDE THE ISSUE TO THE FILE OF ASSESSING OFFICER WITH THE DIRECTION THAT ASSESSING OFFICER WILL REFRAME THE ASSESSMENT FOR BOTH THE YEARS AFTER GIVING DUE OPPO RTUNITY TO THE ASSESSEE TO REPRESENT ITS CASE AND AFTER CONSIDERING ALL THE RELEVANT PROVISIONS C ONTAINED IN LAW IN THIS REGARD. 3. AGAINST THE SEPARATE ORDERS, BOTH DATED 31.01.20 07 OF LD. COMMISSIONER OF INCOME TAX, AHMEDABAD-II, AHMEDABAD UNDER SECTION 263 FOR BOTH THE ASSESSMENT YEARS UNDER APPEALS, THE ASSESSEE PREFERRED APPEALS BEFORE THE TRIBUNAL. THE ITAT,B BENCH, AHMEDABAD VIDE ORDER DATED 04.01.2008 IN ITA NOS. 718 & 719/AHD/2007 FOR THE ASSESSMENT YEARS 1999-2000 & 2000-01 RESPECTIVELY QUASHED BOTH THE ORDERS DATED 31.01.2007 OF LD. COMMISSIONER OF INCOME TAX, AHMEDABAD-II, AHMEDABAD UNDER SECTION 263 OF T HE INCOME TAX ACT, 1961. IN THE MEANTIME, ON 28.12.2007, THE ASSESSING OFFICER FRAM ED THE FRESH ASSESSMENT ORDER IN PURSUANCE OF ORDER OF LD. CIT, AHMEDABAD-II, AHMEDABAD UNDER SECTION 263 OF THE ACT. 4. ON APPEAL, IN THE IMPUGNED ORDERS, BOTH DATED 12 .02.2008, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-VIII, AHMEDABAD CANCELLED BOTH THE ASSESSMENTS FRAMED BY THE ASSESSING OFFICER UNDER SECTION 143(3) READ WITH SE CTION 263 ON 28.12.2007 ON THE GROUND THAT THE ORDERS UNDER SECTION 263, FOR BOTH THE ASSESSME NT YEARS UNDER APPEALS, WERE QUASHED BY THE TRIBUNAL VIDE ORDER DATED 04.01.2008 IN ITA NOS. 71 8 & 719/AHD/2007. AGGRIEVED BY THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS ), THE REVENUE IS IN APPEALS BEFORE THE TRIBUNAL. 5. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MAT ERIAL AVAILABLE ON RECORD. IT IS PERTINENT TO NOTE THAT IN THE IMPUGNED ORDER, THE LEARNED COM MISSIONER OF INCOME TAX (APPEALS) HAS MERELY CANCELLED THE ASSESSMENTS FOR BOTH THE ASSES SMENT YEARS, WHICH WERE FRAMED BY THE ASSESSING OFFICER IN PURSUANCE OF SEPARATE ORDERS B OTH DATED 31.01.2007 OF LD. COMMISSIONER OF INCOME TAX, AHMEDABAD-II, AHMEDABAD UNDER SECTION 2 63 FOR THE ASSESSMENT YEARS 1999-00 & 2000-01. SINCE THE ORDERS DATED 31.01.2007 UNDER SE CTION 263 FOR BOTH THE ASSESSMENT YEARS WERE QUASHED BY THE TRIBUNAL VIDE ORDER DATED 04.01.2008 IN ITA NOS. 718 & 719/AHD/2007 FOR THE ASSESSMENT YEARS 1999-2000 AND 2000-01, WE DO NOT F IND ANY INFIRMITY IN THE IMPUGNED ORDER OF 3 ITA NOS . 1594 & 1590/AHD/2008 LEARNED COMMISSIONER OF INCOME TAX(APPEALS) CANCELL ING BOTH THE ASSESSMENTS FRAMED BY THE ASSESSING OFFICER UNDER SECTION 143(3) READ WITH SE CTION 263 DATED 28.12.2007. 6. IN THE RESULT, BOTH THE APPEALS FILED BY THE REV ENUE ARE DISMISSED. THE ORDER WAS PRONOUNCED IN THE COURT ON 14.09.201 0 SD/- SD/- (N.S. SAINI) (T.K. SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 14 / 09 / 2010 COPY OF THE ORDER IS FORWARDED TO : 1) THE ASSESSEE (2) THE DEPARTMENT. 3) CIT(A.) CONCERNED, (4) CIT CONCERNED, (5) D.R. , ITAT, AHMEDABAD. TRUE COPY BY ORDER DEPUTY REGISTRAR, ITAT, AHMEDABAD LAHA/SR .P.S.