ACIT 13(3), MUMBAI V. THE MAHARASHTRA STATE CO OPERATIVE MARKETING FEDERATION LTD, MUMBAI

ITA 2372/MUM/2013

• Counselvise Citation: 237219914 RSA 2013
• Duration Of Justice: 2 year(s) 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 01-07-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 26-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: YOGESH KAMATDR
• Assessee Lawyers: BANSI G KALE
• Keywords: Bad and doubtful debts

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI RAJENDRA, ACCOUNTANT MEMBER ITA NO.2372/MUM/2013 ASSESSMENT YEAR: 2008-09 THE ACIT-13(3), ROOM NO.427, AAYAKAR BHAVAN, M.K.ROAD, MUMBAI-400020 / VS. THE MAHARASHTRA STATE CO- OPERATIVE MARKETING FEDERATION LTD. 281/287, KANMOOR HOUSE, NARSI NATHA STREET, MASJID, MUMBAI-400009 ( / REVENUE) ( !' # /ASSESSEE) P.A. NO. AAAAT6218L / REVENUE BY SHRI YOGESH KAMAT-DR !' # / ASSESSEE BY SHRI BANSI G. KALE $ % & # ' / DATE OF HEARING : 01/07/2015 & # ' / DATE OF ORDER: 04/08/2015 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 28/12/2012 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI. THE ONLY GROUND RAISED IN THIS APPEAL PERTAINS TO D ELETING THE AMOUNT OF RS.14,18,953/- ON ACCOUNT OF INTEREST ACCRUED ON DOUBTFUL DEBTS AND CREDITED TO THE SUSPE NSE ACCOUNT. THE MAHARASHTRA STATE CO-OPERATIVE MARKETING FEDERATION LTD ITA NO.2372/MUM/2013 2 2. THE CRUX OF ARGUMENT ADVANCED, BY SHRI YOGESH KAMAT, LD. DR, IS THAT EVEN THOUGH THE ASSESSEE IS FOLLOWING MARCENTILE SYSTEM OF ACCOUNTING, THE LD. COMMISSIONER OF INCOME TAX (APPEALS) GRANTED RELIEF TO THE ASSESSEE IGNORING THE DECISION OF THE HONBLE APEX COURT IN THE CASE OF STATE BANK OF TRAVANCORE VS CIT (158 IT R 102), WHICH IS IDENTICAL TO THE FACTS OF THE PRESENT APPE AL. THE ASSESSMENT ORDER WAS DEFENDED. ON THE OTHER HAND, SHRI BANSI G. KALE, LD. COUNSEL FOR THE ASSESSEE, DEFEND ED THE CONCLUSION DRAWN IN THE IMPUGNED ORDER BY CLAIMING THAT THE IMPUGNED ISSUE IS COVERED IN FAVOUR OF THE ASSE SSEE BY THE DECISION OF THE TRIBUNAL IN ITA NO.5874/MUM/200 8 AND 6325/MUM/2009 THAT TO IN THE CASE OF ASSESSEE I TSELF VIDE ORDER DATED 31/07/2012 AND ALSO BY THE DECISIO N FROM HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF AS SESSEE ITSELF FOR AY 2006/07 AND 2005-06. THE LD. COUNSEL PRODUCED THE PHOTOCOPIES OF THESE ORDERS. THIS FACT UAL MATRIX WAS NOT CONTROVERTED BY THE REVENUE. 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD IN VIEW OF THE ABOVE AND WITHOUT GOING INTO MUCH DELIBERATION, WE FIND THAT IN THE CASE OF ASSESSEE FOR AY 2005-06 AND 200 6-07, THE TRIBUNAL VIDE ORDER DATED 31/07/2012 CONSIDERED THE ISSUE VIDE PARA 5 ONWARDS WITH RESPECT TO ACCRUAL O F INTEREST INCOME AND FINALLY FOLLOWING THE DECISION FROM HONBLE DELHI HIGH COURT IN CIT VS EISHER LTD. (201 0) 320 ITR 410 (DEL.) AND CIT VS GIRIRAJ UDYOG PVT. LTD. 2 73 ITR THE MAHARASHTRA STATE CO-OPERATIVE MARKETING FEDERATION LTD ITA NO.2372/MUM/2013 3 495 (ALL.) HELD THAT INTEREST INCOME ON DOUBTFUL DE BTS CANNOT BE TAXED ON ACCRUAL BASIS. IDENTICALLY FOR A.Y. 2007-08, IN THE CASE OF ASSESSEE ITSELF, VIDE ORDER DATED 18/04/2013 (ITA NO.8289/MUM/2010) DECIDED IN FAVOUR OF THE ASSESSEE. IT IS NOT WORTHY THAT THE HONBLE JURISDICTIONAL HIGH COURT IN ITA NO.277 OF 2013 VID E ORDER DATED 21 ST JANUARY 2015 FOLLOWED THE DECISION FROM HONBLE APEX COURT IN UCO BANK VS CIT 237 ITR 889 AND STATE BANK OF TRAVANCORE VS CIT 158 ITR 102 (RELIED UPON BY THE DEPARTMENT), DELIBERATED UPON THE ISSUE IN DETAIL A ND DISMISS THE APPEAL OF THE REVENUE, MEANING THEREBY, UPHELD THE ORDER OF THE TRIBUNAL. IDENTICALLY, IN THE CASE OF ASSESSEE ITSELF, VIDE ORDER DATED 21 ST JANUARY, 2015 ITSELF (ITA NO.293 OF 2013) DISMISS THE APPEAL OF THE REVE NUE UPHOLDING THE STAND OF THE TRIBUNAL. THUS, RESPECTF ULLY FOLLOWING THE HONBLE JURISDICTIONAL HIGH COURT AND THE COORDINATE BENCHES OF THIS TRIBUNAL, WE AFFIRM THE STAND OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) FINALLY, THE APPEAL OF THE REVENUE IS DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 01/07/2015. SD/- SD/- ( RAJENDRA ) (JOGINDER SINGH) '# / ACCOUNTANT MEMBER $# / JUDICIAL MEMBER $ % MUMBAI; ( DATED : 04/08/2015 F{X~{T? P.S/. . . THE MAHARASHTRA STATE CO-OPERATIVE MARKETING FEDERATION LTD ITA NO.2372/MUM/2013 4 %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. *+,- / THE APPELLANT 2. ./,- / THE RESPONDENT. 3. 0 0 $ 1# ( *+ ) / THE CIT, MUMBAI. 4. 0 0 $ 1# / CIT(A)- , MUMBAI 5. 34 .# , 0 *+' * 5 , $ % / DR, ITAT, MUMBAI 6. 6! 7% / GUARD FILE. / BY ORDER, /3+# .# //TRUE COPY// / (DY./ASSTT. REGISTRAR) , $ % / ITAT, MUMBAI