Triton Health Care Private Limited, CHENNAI V. ACIT, CHENNAI

ITA 1689/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86310 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 18-02-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 13-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN
• Assessee Lawyers: T BANUSEKAR
• Keywords: Opportunity of being heard; Bad and doubtful debts
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , . ! '# , $ % BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER ./ ITA NO.1689/MDS/2014 $ # '# / ASSESSMENT YEAR : 2009-10 M/S TRITON HEALTH CARE PRIVATE LIMITED, NO.9, DHANALAKSHMI COLONY, NATARAJAN STREET, VADAPALANI, CHENNAI - 600 026. PAN :AABCT 3051 A V. THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE III(2), CHENNAI - 600 034. ()*/ APPELLANT) (+,)*/ RESPONDENT) )* - . / APPELLANT BY : SHRI T. BANUSEKAR, CA +,)* - . / RESPONDENT BY : SHRI P. RADHAKRISHNAN, JCIT ! - / / DATE OF HEARING : 18.02.2015 0' - / / DATE OF PRONOUNCEMENT: 25.02.2015 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGA INST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-I II, CHENNAI, DATED 28.03.2014 RELEVANT TO THE ASSESSMENT YEAR 20 09-10. 2 I.T.A. NO. 1689/MDS/2014 2. FACTS IN BRIEF ARE THAT THE ASSESSEE IS ENGAGED IN TRADING OF PHARMACEUTICAL PRODUCTS. THE ASSESSEE FILED RETURN OF INCOME DECLARING A TOTAL INCOME OF ` 55,93,370/-. THE RETURN FILED BY THE ASSESSEE WAS PROCESSED UNDER SECTION 143(1) OF INCO ME-TAX ACT, 1961 (IN SHORT 'THE ACT') AND THE ASSESSMENT WAS CO MPLETED UNDER SECTION 143(3) OF THE ACT. DURING THE ASSESSMENT P ROCEEDINGS, THE A.O. OBSERVED THAT THE ASSESSEE HAD WRITTEN OFF AN AMOUNT OF ` 13,62,187/- BEING BAD DEBTS DURING THE YEAR. THE A .O. HAS ASKED THE ASSESSEE TO FURNISH PARTYWISE BREAKUP ON THE SA ME AND LEDGER EXTRACT OF THE RESPECTIVE DEBTORS IN ITS BOOKS. TH E ASSESSEE FILED THE SAME. HOWEVER, THE A.O. HAS NOTICED THAT THE A SSESSEE HAS WRITTEN OFF THE RESPECTIVE DEBTS IN THE DEBTORS LED GER ONLY TO AN EXTENT OF ` 1,365/- IN THE CASE OF LAKSHMI MEDICALS AND IN RES PECT OF OTHER DEBTORS HAS NOT REDUCED THE DEBTOR BALANCES. HENCE, THE A.O. HAS ADDED AN AMOUNT OF ` 13,60,822/- BEING AN AMOUNT OF BAD DEBTS DEBITED TO PROFIT & LOSS ACCOUNT BUT NOT WRIT TEN OFF AS IRRECOVERABLE IN THE RESPECTIVE SUNDRY DEBTORS LEDG ER, TO THE TOTAL INCOME OF THE ASSESSEE. 3. WHEN THE ASSESSEE CARRIED THE MATTER IN APPEAL B EFORE THE LD. CIT(APPEALS), THE LD. CIT(APPEALS) CONFIRMED TH E ORDER OF THE A.O. BY OBSERVING THAT A SUM OF ` 1365/- IN THE CASE OF LAKSHMI 3 I.T.A. NO. 1689/MDS/2014 MEDICALS WAS WRITTEN OFF BY THE ASSESSEE AND NOT IN OTHER CASES. THIS WAS POINTED OUT BY THE AR DURING THE COURSE OF HEARING ON 10.03.2014 AND THE SAME WAS ACCEPTED BY HIM. HENCE , THE LD. CIT(APPEALS) CONFIRMED THE ORDER OF THE A.O. 4. ON BEING AGGRIEVED, THE ASSESSEE CARRIED THE MAT TER IN APPEAL BEFORE THE TRIBUNAL. THE LD.COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE LD. CIT(APPEALS) WITHOUT CONSIDE RING THE SUBMISSIONS OF THE ASSESSEE, CONFIRMED THE ORDER OF THE ASSESSING OFFICER. THE ASSESSEE HAS FILED A PAPER-BOOK CONTA INING (1) DECLARATION FROM THE AUTHORIZED REPRESENTATIVE; (2) COPY OF BALANCE SHEET, PROFIT & LOSS ACCOUNT ALONG WITH SCHEDULES F OR THE FINANCIAL YEAR 2008-09; (3) COPY OF LETTER FILED BEFORE CIT( A) ON 19.03.2014; (4) COPY OF JOURNAL ENTRY BEARING NO.798 DATED 31. 03.2009 AND (5) COPY OF LEDGER EXTRACTS OF PARTIES CLAIMED AS BAD D EBTS. 5. ON THE OTHER HAND, THE LD. D.R. HAS SUBMITTED TH AT THE ISSUE HAS TO BE REMITTED BACK TO THE FILE OF THE A.O. FOR FRESH EXAMINATION. 6. WE HAVE HEARD BOTH SIDES AND PERUSED THE RECORDS AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE LD.COUNSEL FOR THE ASSESSEE HAS ACCEPTED THE PROPOSAL MADE BY THE LD. D.R. TO REMIT BACK THE ISSUE TO THE FILE OF THE A.O. IN VI EW OF THIS, WE SET 4 I.T.A. NO. 1689/MDS/2014 ASIDE THE ORDER PASSED BY THE LD. CIT(APPEALS) AND REMIT THE MATTER BACK TO THE FILE OF THE A.O. TO DECIDE THE I SSUE DE NOVO AFTER EXAMINING THE DETAILS FILED BY THE ASSESSEE AND AFF ORDING REASONABLE OPPORTUNITY OF BEING HEARD TO IT. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON WEDNESDAY, THE 25 TH OF FEBRUARY, 2015 AT CHENNAI. SD/- SD/- ( . ) ( . ! '# ) (A. MOHAN ALANKAMONY) (V. DURGA RAO) /ACCOUNTANT MEMBER $ /JUDICIAL MEMBER /CHENNAI, = /DATED, THE 25 TH FEBRUARY, 2015. KRI. > - +$/?@ A@'/ /COPY TO: 1. )* /APPELLANT 2. +,)* /RESPONDENT 3. ! B/ () /CIT(A)-III, CHENNAI-34 4. ! B/ /CIT, CHENNAI-III, CHENNAI-34 5. @D' +$/$ /DR 6. 'E# F /GF.