Aalidhara Techtex Pvt.Ltd., Surat V. The Income tax Officer,Ward-1(2), Vapi

ITA 2560/AHD/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0914 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 02-08-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 08-11-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH (BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER & SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER) ITA. NO: 2560/AHD/2012 (ASSESSMENT YEAR: 2007-08) M/S. AALIDHRA TECHTEX PVT. LTD. (FORMERLY KNOWN AS M/S. FARMSONS FASHIONS PVT. LTD.) 3003, WORLD TRADE CENTRE RING ROAD, SURAT-395002 V/S INCOME TAX OFFICER, WARD- 1 (2), SURAT (APPELLANT) (RESPONDENT) PAN: AAACF3415F APPELLANT BY : WRITTEN SUBMISSION, ( NONE) RESPONDENT BY : SHRI K. MADHUSUDAN, SR. D.R. ( )/ ORDER DATE OF HEARING : 02 -08-201 6 DATE OF PRONOUNCEMENT : 05 -08-2016 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. WITH THIS APPEAL, THE ASSESSEE HAS CHALLENGED THE C ORRECTNESS OF THE ORDER OF THE LD. CIT(A)-I, SURAT DATED 05.09.2012 P ERTAINING TO A.Y. 2007-08. ITA NO2560/A HD/2012 . A.Y. 2007-08 2 2. THE SOLE GRIEVANCE OF THE ASSESSEE RELATES TO THE D ENIAL OF THE WRITE OFF OF RS. 2,26,690/- ON ACCOUNT OF DUTY DRAWBACK RECEI VABLE. 3. WE HAVE HEARD THE LD. D.R. AT LENGTH. THE REPRESENT ATIVE OF THE ASSESSEE CHOSE WRITTEN SUBMISSIONS. 4. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE AUTHORI TIES BELOW. THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND WEAVING OF GREY CLOTH. THE ASSESS EE WAS ENTITLED TO THE DEPB AGAINST THE EXPORTS MADE BY THE ASSESSEE I N PRECEDING YEARS AMOUNTING TO RS. 3,08,040/- WHICH THE ASSESSEE HAS SHOWN AS ITS INCOME IN EARLIER YEARS. 5. DURING THE FINANCIAL YEAR 2004-05, THE ASSESSEE REC EIVED RS. 81,350/- ON ACCOUNT OF DEBP SALES, THE OUTSTANDING BALANCE R EMAINED AT RS. 2,26,690/- WHICH WAS CARRIED FORWARD TO SUBSEQUENT YEARS. 6. FOR THE YEAR UNDER CONSIDERATION, THE OPENING BALAN CE OF DUTY DRAW BACK RECEIVABLE REMAINED AT RS. 2,26,690/- AS THE A SSESSEE WAS NOT REQUIRED TO AVAIL DEPB IT CHOSE TO WRITE OFF OF RS . 2,2,6,690/- AND THE SAME WAS CHARGED TO THE PROFIT AND LOSS ACCOUNT . T HE A.O. DENIED THE WRITE OFF ON THE GROUND THAT NO SUPPORTING DOCUMENT ARY EVIDENCES WERE FURNISHED BY THE ASSESSEE. 7. THE ASSESSEE AGITATED THE MATTER BEFORE THE LD. CIT (A) BUT WITHOUT ANY SUCCESS. 8. IN OUR CONSIDERED VIEW, THE LD. CIT(A) WAS NOT JUST IFIED IN NOT DELETING THE DISALLOWANCE MADE BY THE A.O. ONCE AN AMOUNT HA S BEEN SHOWN ITA NO2560/A HD/2012 . A.Y. 2007-08 3 AS AN INCOME AND CREDITED TO THE RECEIVABLES, ACCOR DINGLY, ANY SUBSEQUENT WRITE OFF OF THE SAME IS A LEGITIMATE CH ARGE ON THE PROFITS AND IS DEDUCTIBLE AS SUCH. THIS IS WHOLLY INCIDENT AL TO THE BUSINESS OF THE ASSESSEE. 9. ON CONSIDERATION OF THE TOTALITY OF THE FAC TS, WE DO NOT FIND ANY REASON WHY THE WRITE OFF SHOULD NOT BE ALLOWED. WE, ACCORDINGLY SET ASIDE THE FINDINGS OF THE LD. CIT(A) AND DIRECT THE A.O. TO DELETE THE ADDITION OF RS. 2,26,690/-. 10. APPEAL FILED BY THE ASSESSEE IS ACCORDINGLY DISMISS ED. ORDER PRONOUNCED IN OPEN COURT ON 05 - 08- 201 6. SD/- SD/- (R.P. TOLANI) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD