Kautilya Finsecurities Limited, Ahmedabad V. The ACIT.,Cent,Circle-1(1), Ahmedabad

ITA 2364/AHD/2005

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 9286 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 9 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2009
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 20-08-2009
• Assessment Year: 2002-2003
• Appeal Filed On: 09-11-2005
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NEETA SHAH
• Keywords: Bad and doubtful debts; Set aside
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD AHMEDABAD B BENCH (BEFORE S/SHRI R.V.EASWAR, VICE-PRESIDENT AND P.K. BANSAL, ACCOUNTANT MEMBER) ITA NO.2364/AHD/2005 [ASSTT.YEAR : 2002-2003] KAUTILYA FINSECURITIES LTD. A/59, 4 TH FLOOR, NOBLES OPP: NEHRU BRIDGE, ASHRAM ROAD AHMEDABAD. VS. ACIT, CENT.CIR.1(1) AHMEDABAD. ASSESSEE BY : SHRI TUSHAR HEMANI REVENUE BY : SMT.NEETA SHAH O R D E R PER R.V.EASWAR, VICE-PRESIDENT : THIS APPEAL BY THE ASSESSEE RELATES TO THE AY 2002-03 AND ARISES OUT OF THE ASS ESSMENT ORDER PASSED U/S 143(3) OF THE IT ACT ON THE ASSESSEE WHOSE BUSINESS IT WAS TO TRADE IN SECURITIES AND TO PROVIDE HIRE-PURCHASE FINANCE. THE ONLY GROU ND TAKEN IS THAT THE DEPARTMENTAL AUTHORITIES WERE NOT JUSTIFIED IN NOT ALLOWING THE CLAIM OF BAD DEBTS OF RS.3,44,782. 2. AT THE TIME OF THE HEARING IT WAS POINTED OUT ON BEHALF OF THE ASSESSEE THAT THE SAME CONTROVERSY RELATING TO THE SAME DEBT OR HAD REACHED THE TRIBUNAL IN THE AY 2001-02 IN ITA NO.3566/AHD/2004 AND C.O.N O.3/AHD/2005 AND BY ORDER DATED 8-5-09 THE TRIBUNAL HAS SENT BACK THE M ATTER TO THE ASSESSING OFFICER TO EXAMINE THE FACT WHETHER THE MONEY ADVAN CED BY THE ASSESSEE WAS IN THE ORDINARY COURSE OF BUSINESS AND WHETHER THE CLA IM OF THE ASSESSEE WAS BONA FIDE (VIDE PARAGRAPH 9 OF THE ORDER) AND TAKE A FRE SH DECISION. IT IS NOT IN DISPUTE THAT THE FACTS ARE THE SAME FOR THE YEAR UN DER APPEAL. THEREFORE, RESPECTFULLY FOLLOWING THE EARLIER ORDER OF THE TRI BUNAL, WE SET ASIDE THE ORDERS OF THE INCOME-TAX AUTHORITIES ON THIS POINT AND RES TORE THE ISSUE TO THE FILE OF THE PAGE - 2 ITA NO.2364/AHD/2005 -2- ASSESSING OFFICER WITH THE SAME DIRECTIONS AS WERE GIVEN IN THE EARLIER ORDER AND ALLOW THE APPEAL OF THE ASSESSEE FOR STATISTICA L PURPOSES. 3. IN THE RESULT THE APPEAL IS DISMISSED WITH NO OR DER AS TO COSTS. ORDER PRONOUNCED IN THE OPEN COURT 20 TH AUGUST, 2009. SD/- SD/- (P.K. BANSAL) ACCOUNTANT MEMBER (R.V.EASWAR) VICE-PRESIDENT PLACE : AHMEDABAD DATE : 20-08-2009 COPY OF THE ORDER FORWARDED TO: 1) : ASSESSEE 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR, ITAT, AHMEDABAD