Dy. CIT Satara Cir. Satara, V. Unsited Western Bank Ltd., Mumbai

ITA 227/PUN/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3283 (ITAT-PUNE)
• Duration Of Justice: 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 08-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARESHWAR SHARMA
• Keywords: Bad and doubtful debts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV JM AND SHRI D. KARUNAKARA RAO, AM I.T.A. NO. 227/PN/2010: A.Y. 2006-07 DY. CIT SATARA CIR. SATARA APPELLANT VS. UNITED WESTERN BANK LTD., THROUGH SUCCESSOR IDBI BANK LTD., IDBI TOWER CUFFEE PARADE, MUMBAI PAN AABCT 0177 D RESPONDENT APPELLANT BY : SHRI HARESHWAR SHARMA RESPONDENT BY: NONE ORDER PER SHAILENDRA KUMAR YADAV JM THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A)-III PUNE DATED 17-11-2009 ON T HE POINT OF DELETION OF PENALTY OF RS. 1,10,60,132/- WITH REGAR DS TO BAD DEBTS. 2. THE ASSESSEE HAS CLAIMED DEDUCTION IN PURSUANT T O THE CONSISTENT VIEW FOLLOWED BY IT IN EARLIER YEAR AND THE A.O HAS DISALLOWED THE SAME FOLLOWING THE STAND TAKEN BY TH E DEPARTMENT IN EARLIER YEARS. THE ISSUE OF BAD DEBT HAS BEEN DECIDED IN FAVOUR OF ASSESSEE BY FOLLOWING THE DECI SION OF HONBLE SUPREME COURT IN THE CASE OF T.R.F. LTD. V S. CIT (2010) 230 CTR (SC) 14. IN VIEW OF THE SAID JUDGME NT OF HONBLE SUPREME COURT IN QUANTUM APPEAL, THE ISSUE OF ALLOWABILITY BAD DEBT IS NO MORE IN CONTROVERSY IN CASE SAME HAS BEEN WRITTEN OFF IN THE BOOKS OF ACCOUNTS O THE ASSESSEE. ITA NO.227/PN/10 UNITED WESTERN BANK LTD. A.Y. 2006-07 2 THE ISSUE OF BAD DEBT IS THE BASIS FOR LEVYING PENA LTY IN QUESTION BEFORE US. SO IN THIS LEGAL BACKGROUND, T HE ASSESSING OFFICER WAS NOT JUSTIFIED IN IMPOSING PENALTY IN Q UESTION AND THE SAME HAS RIGHTLY BEEN DELETED BY THE CIT(A). WE UPHOLD THE SAME. IT IS PERTINENT TO MENTION HERE THAT THE ISSUE OF PENALTY WITH REGARDS TO BAD DEBT IS THE SUBJECT MAT TER OF APPEAL BEFORE US. OUR ORDER IS CONFINED TO THE ISS UE ALONE OF PENALTY ALONE. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH OCTOBER 2010 SD/- SD/- (D. KARUNAKARA RAO) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED THE 8 TH OCTOBER 2010 ANKAM COPY FORWARDED TO: (1) ASSESSEE (2) DEPARTMENT (3) CIT IV PUNE (4) CIT(III) PUNE (5) THE D.R. A BENCH, PUNE TRUE COPY BY ORDER ASSTT. REGISTRAR INCOME-TAX APPELLATE TRIBUNAL, PUNE BENCHES, PUNE