Ceejay Finance Ltd., Nadiad V. The Dy.CIT.,Kheda Range, Nadiad

ITA 2550/AHD/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6800 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 20-04-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 07-09-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROBIN RAVAL
• Keywords: Bad and doubtful debts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND N. S. SAINI, AM) ITA NO. 2550/AHD/2009 A. Y.: 2006-07 CEEJAY FINANCE LTD., C.J. HOUSE, MOTA POL NADIAD 387 001 VS THE D. C. I. T., KHEDA CIRCLE, 1 ST FLOOR, AAYAKAR BHAVAN, NR. PRAKASH NAGAR, PIJ ROAD, NADIAD 387 002 PA NO. AAACH 5108 H (APPELLANT) (RESPONDENT) APPELLANT BY SHRI ANIL KSHATRIYA, AR RESPONDENT BY SHRI ROBIN RAVAL, SR. DR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)-IV , BARODA DATED 24 TH JULY, 2009 FOR ASSESSMENT YEAR 2006-07, CHALLENGING THE ADDITION OF RS.2,92,000/-. 2. THE LEARNED CIT(A) NOTED THAT THE ADDITION WAS MADE OF RS.2,92,000/- BEING 5% OF THE BAD DEBTS CLAIMED OF RS.58,57,000/-. THE LEARNED CIT(A) ALSO NOTED THAT IN ASSESSMENT YE AR 2005-06 THE LEARNED CIT(A) VIDE ORDER DATED 19-03-2009 CONFIRME D THE DISALLOWANCE AND SINCE THE ISSUE IS IDENTICAL, THER EFORE, THE APPEAL OF THE ASSESSEE WAS DISMISSED. ITA NO.2550/AHD/2009 CEEJAY FINANCE LTD. VS DCIT, KHEDA CIRCLE, NADIAD 2 3. ON CONSIDERATION OF THE ABOVE FACTS AND SUBMISSI ONS OF THE PARTIES, WE ARE OF THE VIEW THE ISSUE IS COVERED BY ORDER OF THE ITAT AHMEDABAD C BENCH IN THE CASE OF THE SAME ASSESSE E IN ITA NO.1858/AHD/2009 FOR ASSESSMENT YEAR 2005-06 WHEREB Y THE TRIBUNAL DELETED THE SIMILAR ADDITION VIDE ORDER DA TED 21-01-2011, COPY OF WHICH IS FILED AT PAGE 21 OF THE PAPER BOOK . THE TRIBUNAL NOTED IN THE ABOVE ORDER THAT THE ISSUE IS COVERED BY THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF T. R. F. L TD. VS CIT 323 ITR 397 AND FURTHER NOTED THAT ACCORDING TO THE PRO VISIONS OF LAW THE BAD DEBTS HAVE TO BE ALLOWED FULLY, OTHERWISE THERE IS NO PROVISION TO ALLOW THE BAD DEBTS IN PERCENTAGE AND THE FINDINGS OF THE AUTHORITIES BELOW ARE ALIEN TO THE PROVISIONS OF SECTION 36(1) (VII) OF THE IT ACT. BOTH THE PARTIES CONCEDED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE ABOVE DECISION OF THE TRIBUNAL. BY FOLLOWING THE SAME, WE SET ASIDE THE ORDERS OF THE AUTHORITIES BE LOW AND DELETE THE ADDITION. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 21-04-2011 SD/- SD/- (N. S. SAINI) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 21-04-2011 LAKSHMIKANT/- ITA NO.2550/AHD/2009 CEEJAY FINANCE LTD. VS DCIT, KHEDA CIRCLE, NADIAD 3 COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD