DCIT, CHENNAI V. M/s. G.F.Securities, CHENNAI

ITA 1934/CHNY/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5228 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 19-04-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 15-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S SRIDHAR
• Keywords: Bad and doubtful debts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH A, CHENNAI BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AN D SHRI GEORGE MATHAN, JUDICIAL MEMBER .. I.T.A. NO. 1934/MDS/2010 ASSESSMENT YEAR : 2007-08 THE DEPUTY COMMISSIONER OF INCOME-TAX, BUSINESS CIRCLE-1, CHENNAI. V. N/S. G.F. SECURITIES, NO.20, OLD NO.13, AGASTYAR MANOR, RAJA STREET, T. NAGAR, CHENNAI-600 017. (PAN : AAEFG1475D) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SHAJI P. JACOB RESPONDENT BY : SHRI S. SRIDHAR O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED CIT(APPEALS)-VI, CHENNAI IN ITA NO. 34/10-11 DATED 16-08-2010 FOR THE ASSESSMENT YEAR 2007-08. 2. SHRI SHAJI P. JACOB, LEARNED SR. DR REPRESENTED ON BEHALF OF THE REVENUE AND SHRI S. SRIDHAR, ADVOCATE REPRESENTED ON BEHALF OF THE ASSESSEE. IN THE REVENUES APPEAL THE REVENUE HAS CHALLENGED THE ACT ION OF THE LEARNED CIT(A) IN DELETING THE DISALLOWANCE OF BAD DEBTS OF ` 9 LAKHS BY FOLLOWING THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE ASSES SEES OWN CASE FOR THE I.T.A. NO.1934/MDS/2010 2 ASSESSMENT YEAR 2006-07. IT WAS THE SUBMISSION THA T DURING THE ASSESSMENT YEAR 2006-07 THE ASSESSEE HAD WRITTEN OFF ` 50 LAKHS AND DURING THE ASSESSMENT YEAR 2007-09 THE ASSESSEE HAD WRITTEN OFF AN AMOUNT OF ` 9 LAKHS. IT WAS THE SUBMISSION THAT THE LEARNED CIT(A) HAD NOT APPRECIA TED THE FACT THAT THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE AS SESSEES OWN CASE FOR THE ASSESSMENT YEAR 2006-07 HAD NOT BECOME FINAL AND TH E APPEAL WAS PENDING BEFORE THE HON'BLE HIGH COURT. 3. IN REPLY, THE LEARNED AUTHORISED REPRESENTATIVE VEHEMENTLY SUPPORTED THE ORDER OF THE LEARNED CIT(A). IT WAS THE SUBMISSION THAT FOR THE ASSESSMENT YEAR 2006-07 THE ASSESSEES CLAIM OF THE WRITE OFF OF BA D DEBT TO THE EXTENT OF ` 50 LAKHS HAD BEEN ACCEPTED AND AS THE AMOUNT OF ` 9 LAKHS WRITTEN OFF DURING THE RELEVANT ASSESSMENT YEAR WAS THE BALANCE OF THE SAM E DEBT, THE ORDER OF THE TRIBUNAL WAS LIABLE TO BE FOLLOWED. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS IT IS NOTICED THAT THE TOTAL CLAIM OF BAD DEBT IN RESPECT OF M/S. ROOPCHAND CHAB ILDAS & SONS IS FOR AN AMOUNT OF ` 59 LAKHS AND AS IT IS NOTICED THAT THE CLAIM OF BA D DEBT TO THE EXTENT OF ` 50 LAKHS HAS BEEN ACCEPTED BY THE CO-ORDINATE BENC H OF THIS TRIBUNAL IN THE ASSESSEES OWN CASE IN ITA NO. 1215/MDS.2009 DATED 26-05-2010 FOR THE ASSESSMENT YEAR 2006-07, THE BALANCE OF ` 9 LAKHS CLAIMED DURING THE RELEVANT ASSESSMENT YEAR WHICH IS UNDER APPEAL IS ALSO LIABL E TO BE ALLOWED AS THE FACTS REMAIN THE SAME AND NO FACTS HAVE BEEN PLACED BEFOR E US TO DISTURB THE FINDING I.T.A. NO.1934/MDS/2010 3 WHICH HAS BEEN ARRIVED AT BY THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2006-07 . IN THE CIRCUMSTANCES AS IT IS NOTICED THAT THE LEARNED CIT(A) HAS ONLY FOLL OWED THE JUDICIAL DISCIPLINE BY FOLLOWING THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE ASSESSEES OWN CASE IN RESPECT OF THE IDENTICAL ISSUE, WE ARE OF THE VIEW THAT THE ORDER OF THE LEARNED CIT(A) IS ON A RIGHT FOOTING AND DOES N OT CALL FOR ANY INTERFERENCE. IN THE CIRCUMSTANCES, THE APPEAL OF THE REVENUE IS DIS MISSED. 5. THE ORDER WAS PRONOUNCED IN THE COURT ON 19-04-2 011. SD/- SD/- (ABARAHAM P. GEORGE) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 19 TH APRIL, 2011. H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE