THE DCIT 8(2), MUMBAI V. M/S. PARLE PET PVT. LTD, MUMBAI

ITA 1675/MUM/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 1217 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-07-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 12-04-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 07-03-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEVADASAN
• Assessee Lawyers: FIROZE ANDHRIUJJAN
• Keywords: Bad and doubtful debts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C : MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND RAJENDRA SINGH, A.M. ITA. NO. 1675/MUM/2008 ASSESSMENT YEAR 2004-2005 THE DCIT 8 (2) MUMBAI 76 VS. M/S. PARLE PET PVT. LTD. MUMBAI 400 099 PAN AABCP-9640-D (APPELLANT) (RESPONDENT) FOR APPELLANT : SHRI DEVADASAN (DR) FOR RESPONDENT : SHRI FIROZE ANDHRIUJJAN (AR) ORDER PER D. MANMOHAN, V.P. 1. THE ONLY GROUND URGED BY THE REVENUE READS AS U NDER : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) ERRED IN DELETING THE DISAL LOWANCE OF BAD DEBTS OF RS.11,08,962/-. 2. WE HAVE HEARD THE LEARNED DR AS WELL AS THE LEA RNED COUNSEL, APPEARING ON BEHALF OF THE ASSESSEE, AND C AREFULLY PERUSED THE RECORD. 3. FACTS IN SHORT ARE THAT THE ASSESSEE-COMPANY WH ICH IS ENGAGED IN THE BUSINESS OF TRADING OF PACKAGED DRIN KING WATER HAS DEBITED AN AMOUNT OF RS.13,58,475/- TO P & L ACCOUN T IN RESPECT OF BAD DEBTS WRITTEN OFF OUT OF WHICH AN AMOUNT OF RS.11, 08,962/- PERTAINS TO OUTSTANDING DEBTORS AND SUCH AMOUNT HAS BEEN TREATE D AS INCOME IN THE EARLIER YEARS. IN THE LIGHT OF AMENDED PROVISIONS O F SECTION 36 OF THE ACT AND ALSO BEARING IN MIND THE DECISION OF THE HONBL E BOMBAY HIGH COURT IN THE CASE OF OMEN INTERNATIONAL BANK 313 ITR 128 BAD DEBT IS ALLOWABLE AS DEDUCTION IF IT IS WRITTEN OFF IN THE BOOKS OF ACCOUNTS. ORDER OF THE ASSESSING OFFICER DOES NOT INDICATE THAT THE BONAFIDES OF THE CLAIM 2 ARE IN DISPUTE. UNDER THE CIRCUMSTANCES, LEARNED CI T(A) ACCEPTED THE CLAIM OF THE ASSESSEE. IN THE ABSENCE OF ANY MATERI AL TO CONTRADICT THE FINDINGS OF THE LEARNED CIT(A), WE DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LEARNED CIT(A). UNDER THE CIRCUMST ANCES, AS PRONOUNCED IN THE OPEN COURT, APPEAL FILED BY THE ASSESSEE IS DISMISSED. SD/- SD/- (RAJENDRA SINGH) (D.MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT MUMBAI, DATE 07 TH JULY, 2010. VBP/- COPY TO 1. THE DCIT 8 (2), R.NO. 216-A, AAYAKAR BHAVAN, M.K . ROAD MUMBAI 400 020. 2. M/S. PARLE PET PVT. LTD., WESTERN EXPRESS HIGHWA Y, CHAKALA, ANDHERI (EAST), MUMBAI 400 099 PAN AABCP-9640-D 3. CIT (A)-VIII, MUMBAI. 4. CIT, M.C-VIII, MUMBAI. 5. D.R. CIT(A) BENCH 6. GUARD FILE. (TRUE COPY) BY ORDER ASST. REGISTRAR, ITAT, MUMBAI BENCHES MUMBAI.