BASF CONSRUCTION CHEMICALS (INDIA) P. TD, NAVI MUMBAI V. ACIT RG 10(3), MUMBAI

ITA 2606/MUM/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 7970 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 05-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRIS T BIDARI
• Assessee Lawyers: HEENA DOSHI
• Keywords: Bad and doubtful debts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI BEFORE SHRIR.S.SYAL, AM AND SMT.ASHAVIJAYARAGHAVAN, JM ITA NO.2606/MUM/2010 :ASST.YEAR 2006-2007 M/S.BASF CONSTRUCTION CHEMICALS (INDIA) PRIVATE LIMITED, C-68 MIDC TURBHE THANE BELAPUR ROAD NAVI MUMBAI 400 613. PAN : AAACM4701B. VS. THE ASSTT.COMMISSIONER OF INCOME-TAX RANGE 10(3) MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY :MS.HEENADOSHI RESPONDENT BY :SHRIS.T.BIDARI O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE ASSESSEEARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 21.01.2010 IN RELATION TO ASSESSMENT YEAR 2006-2007 . 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION OF RS.15,88,662 ON ACCOUNT OF BAD DEBTS. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD, WE FIND THAT THIS ISSUE IS NO MORE RES INTEGRA IN VIEW OF THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF T.R.F. LTD. VS. CIT [(2010) 323 ITR 397 (SC)] WHEREIN IT HAS BEEN HELD THAT AFTER 1.4.1989 THE A SSESSEE IS ENTITLED TO DEDUCTION FOR BAD DEBTS ON MERE WRITING OFF OF SUCH SUM IN THE BOOKS OF ACCOUNT AND IT IS NOT REQUIRED TO PROVE THAT THE DEBT HAS BECOME BAD. SIMILAR VIEW HAS BEEN TAKEN BY THE HONBLE BOMBAY HIGH COURT IN CIT VS. STAR CHEMICALS (BOMBAY) P.LTD. [(2009) 313 ITR 126 (BOM.)]. AS THE ASSESSEE HAS ADMITTEDLY WRITTEN OFF THE AMOUNT OF BAD DEBTS IN THE BOOKS OF ACCOUNT AND THE RE IS NO FINDING OF THE AO THAT THE CONDITIONS OF SECTION 36(2) HAVE NOT BEEN COMPL IED WITH, RESPECTFULLY FOLLOWING THESE PRECEDENTS, WE ORDER FOR THE DELETION OF THIS ADDITION. ITA NO.2606/MUM/2010 M/S.BASF CONSTRUCTION CHEMICALS (INDIA) PVT.LTD. 2 4. IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRONOUNCED ON THIS 25 TH DAY OF MARCH, 2011 . S/- SD/- (ASHAVIJAYARAGHAVAN) (R.S.SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI : 25 TH MARCH, 2011. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) XXII, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.