Visteon Automotive Systems India Private Limited, Chengalput V. DCIT, CHENNAI

ITA 2426/CHNY/2014

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0140 (ITAT-CHENNAI)
• Duration Of Justice: 6 year(s) 9 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 15-07-2021
• Assessment Year: 2003-2004
• Appeal Filed On: 25-09-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: N V BALAJI
• Keywords: Bad and doubtful debts; Set aside
• Section: 143(3); 115JB; 143(1); 143(2); 263

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI . . , . , BEFORE SHRI DUVVURU R.L. REDDY, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.670/CHNY/2011 & ITA NO.1081/CHNY/2008 & ITA NOS.2425 & 2426/CHNY/2014 & ITA NO.2039/CHNY/2007 /ASSESSMENT YEARS: 2003-04 & 2004-05 M/S.HANON AUTOMOTIVE SYSTEMS INDIA PVT. LTD., (FORMERLY KNOWN AS VISTEON AUTOMOTIVE SYSTEMS INDIA PVT. LTD.), KEELAKARANAI VILLAGE, MALROSAPURAM POST, MARAIMALAI NAGAR, CHENGALPATTU-603 204. V. THE ACIT / DCIT, COMPANY CIRCLE-III (4), 121, M.G.ROAD, CHENNAI-34. [PAN: AAACM 6890 R] ( ' /APPELLANT) ( #$' /RESPONDENT) ' / APPELLANT BY : MR.N.V.BALAJI, ADV. #$' /RESPONDENT BY : MR.SURESH PERIASAMY, JCIT /DATE OF HEARING : 06.07.2021 /DT. OF PRONOUNCEMENT : 12.07.2021 / O R D E R PER BENCH: THE ASSESSEE FILED THESE APPEALS AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX, CHENNAI-I/THE COMMISSIONER OF INCOME TAX (APPEALS)-III, CHENNAI, IN C.NO.218(30)/CIT-I/263/2010-11 DATED 08 .02.2011 & IN C.NO.218(28)/CIT-I/263/2006-07 DATED 20.03.2008, IN ITA NOS.710 & ITA NO.670/CHNY/2011 ITA NO.1081/CHNY/2008 ITA NOS.2425 & 2426/CHNY/2014 & ITA NO.2039/CHNY/2007 :- 2 -: 1467/2013-14 DATED 30.06.2014 FOR THE AY 2003-04 AN D IN ITA NO.744/2006- 07/A-III DATED 13.06.2007 FOR THE AY 2004-05. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FI LED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2003-04 ON 28.11.2003 ADMITTING NIL INCOME. THE RETURN WAS PROCESSED UNDER SECTION 143(1) OF THE INCOME TA X ACT, 1961 [ACT IN SHORT] ON 16.01.2004. THE SAID RETURN WAS SELECTED FOR SCRUTINY AND NOTICE UNDER SECTION 143(2) OF THE ACT DATED 16.11.2004 WA S ISSUED. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE AS SESSMENT UNDER SECTION 143(3) OF THE ACT WAS COMPLETED ON 27.02.2006 BY DI SALLOWING THE BAD DEBTS OF .34,53,205/- AND THE RESULT AMOUNT OF .34,71,73,739/- WAS ALLOWED TO BE SET OFF BY CARRY FORWARD OF BUSINESS LOSS, BUT WITH OUT MENTIONING THE PROFIT ARRIVED UNDER SECTION 115JB OF THE ACT SINCE THERE WAS NO CHANGE IN THE PROFIT. 2.1 SUBSEQUENTLY, VIDE ORDER UNDER SECTION 263 OF T HE ACT DATED 20.03.2008, THE LD. CIT SET ASIDE THE ASSESSMENT ORDER WITH A D IRECTION TO COMPUTE THE INCOME UNDER SECTION 115JB OF THE ACT AS THE AO HAS NOT COMPUTED THE PROFIT U/S. 115JB IN THE ASSESSMENT ORDER U/S. 143(3) OF T HE ACT. THE AO, AFTER EXAMINING THE CASE WITH REGARD TO CITS DIRECTION, COMPLETED THE ASSESSMENT UNDER SECTION 143(3) R.W.S. 263 OF THE ACT ON 26.11 .2008, ARRIVING THE BOOK PROFIT UNDER SECTION 115JB AT .11,00,42,342/- AFTER MAKING ADDITION OF .18,56,82,978/- TOWARDS THE ITEMS SPECIFIED IN CLAU SE (A) TO (F) OF EXPLANATION TO SECTION 115JB OF THE ACT. ITA NO.670/CHNY/2011 ITA NO.1081/CHNY/2008 ITA NOS.2425 & 2426/CHNY/2014 & ITA NO.2039/CHNY/2007 :- 3 -: 2.2 AGGRIEVED BY THE ORDER UNDER SECTION 143(3) R.W .S. 263 OF THE ACT DATED 26.11.2008 OF THE ASSESSING OFFICER, THE ASSESSEE P REFERRED AN APPEAL BEFORE THE LD. CIT(A) WITH REGARD TO THE COMPUTATION OF BO OK PROFIT UNDER SECTION 115JB, LEVY OF INTEREST AND CREDIT FOR TAX PAID, ET C. 2.3 SUBSEQUENTLY, AGAIN THE LD. CIT VIDE HIS ORDER UNDER SECTION 263 DATED 08.02.2011 HAS SET ASIDE THE ASSESSMENT ORDER PASSE D UNDER SECTION 143(3) R.W.S. 263 DATED 26.11.2008 FOR THE PURPOSE OF ALLO WING THE CORRECT SET OFF OF LOSS AGAINST THE BOOK PROFIT COMPUTED UNDER SECTION 115JB. AFTER EXAMINING THE CASE, ESPECIALLY WITH REGARD TO CIT-IS DIRECTI ON GIVEN IN HIS ORDER DATED 08.02.2011, THE ASSESSING OFFICER COMPLETED THE ASS ESSMENT UNDER SECTION 143(3) R.W.S. 263 ON 30.12.2011, COMPUTING THE BOOK PROFIT AT .16,48,26,055/- AFTER MAKING THE ADDITION OF .18,56,82,978/- TOWARDS ITEMS SPECIFIED IN CLAUSE (A) TO (F) OF EXPLANATION TO SECTION 115JB OF THE A CT. 2.4. AGGRIEVED BY THE ORDER UNDER SECTION 143(3) R .W.S. 263 OF THE ACT DATED 30.12.2011 OF THE ASSESSING OFFICER, THE ASSESSEE F ILED THE APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) VIDE ORDER DATED 30.06.2 014 PASSED THE COMMON APPELLATE ORDER AGAINST THE APPEALS FILED AGAINST T HE ASSESSMENT ORDER UNDER SECTION 143(3) R.W.S. 263 OF THE ACT DATED 26.11.20 08 AS WELL AS REASSESSMENT ORDER 143(3) R.W.S. 263 OF THE ACT DATED 30.12.2011 , AGAINST WHICH, THE ASSESSEE PREFERRED FURTHER APPEAL BEFORE THE TRIBUN AL. MOREOVER, THE ASSESSEE ALSO FILED APPEALS AGAINST THE ORIGINAL REVISION OR DER UNDER SECTION 263 OF THE ITA NO.670/CHNY/2011 ITA NO.1081/CHNY/2008 ITA NOS.2425 & 2426/CHNY/2014 & ITA NO.2039/CHNY/2007 :- 4 -: ACT DATED 26.11.2008 AND SUBSEQUENT REVISION ORDER UNDER SECTION 263 OF THE ACT DATED 08.02.2011. 3. THE ASSESSEE ALSO FILED AN APPEAL IN ITA NO.203 9/CHNY/2007 FOR THE ASSESSMENT YEAR 2004-05 AGAINST THE FRINGE BENEFIT TAX. 3.1 WHEN THESE APPEALS FOR THE ASSESSMENT YEARS 200 3-04 AND 2004-05 WERE TAKEN UP FOR HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE HAS OPTED TO AVAIL THE VIVAD-SE-VISHWAS SCHEME 2020 AND FORM NO.3 WAS ALSO ISSUED. IT WAS SUBMITT ED THAT THE ASSESSEE MAY BE PERMITTED TO WITHDRAW THE APPEALS FOR BOTH THE A SSESSMENT YEARS. 3.2 ON THE OTHER HAND, THE LEARNED DEPARTMENTAL REP RESENTATIVE HAS NOT RAISED ANY OBJECTION TO THE SUBMISSIONS OF THE LEAR NED COUNSEL. 4. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERI ALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. FOR BOTH THE ASSESSMENT YEARS 2003-04 AND 2004-05, THE ASSESSEE HAS OPTED FOR THE VIVAD-SE-VISHWAS SCHEME 2020 AND THE DESIGNATED AUT HORITY HAS ISSUED FORM NO.3 FOR THE SETTLEMENT OF PENDING TAX DISPUTE . THUS, THE LD. COUNSEL PRAYED THAT THE ASSESSEE MAY BE PERMITTED TO WITHDR AW THE APPEALS. 4.1 IN VIEW OF THE SUBMISSIONS OF THE ASSESSEE, THE APPEALS FILED BY THE ASSESSEE ARE PERMITTED TO BE WITHDRAWN. HOWEVER, I T IS OPEN TO THE ASSESSEE TO APPROACH THE TRIBUNAL BY FILING AN APPROPRIATE A PPLICATION IN THE EVENT OF ANY ITA NO.670/CHNY/2011 ITA NO.1081/CHNY/2008 ITA NOS.2425 & 2426/CHNY/2014 & ITA NO.2039/CHNY/2007 :- 5 -: INJUSTICE CAUSED TO THE ASSESSEE IN RESPECT OF THE SETTLEMENT OF DISPUTE RELATING TO THE VIVAD-SE-VISHWAS SCHEME 2020. 4.2 SINCE THE APPEALS FILED AGAINST THE APPELLATE O RDER UNDER SECTION 143(3) R.W.S. 263 OF THE ACT FOR THE ASSESSMENT YEAR 2003- 04 ARE DISMISSED AS WITHDRAWN, THE APPEALS FILED AGAINST REVISION ORDER S IN ITA NO.670/CHNY/2011, ITA NO.1081/CHNY/2008 ARE DISMISSED AS INFRUCTUOUS. 5. IN THE RESULT, THE APPEALS FILED BY THE ASSESSEE IN ITA NOS.2425 & 2426/CHNY/2014 AND ITA NO.2039/CHNY/2007 ARE DISMIS SED AS WITHDRAWN AND ITA NO.670/CHNY/2011, ITA NO.1081/CHNY/2008 ARE DIS MISSED AS INFRUCTUOUS. ORDER PRONOUNCED ON THE 12 TH DAY OF JULY, 2021, IN CHENNAI. SD/- SD/- ( . ) (S. JAYARAMAN) / ACCOUNTANT MEMBER ( +, . . - ) (DUVVURU R.L. REDDY) /JUDICIAL MEMBER /CHENNAI, /DATED: 12 TH JULY, 2021. TLN # . /COPY TO: 1. ' /APPELLANT 4. / /CIT 2. #$' /RESPONDENT 5. # /DR 3. / ( ) /CIT(A) 6. /GF