The Tuticorin Melur Co - operative bank Ltd., Tuticorin V. DCIT, Tuticorin

ITA 2633/CHNY/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7741 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 15-02-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 20-10-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S. RENGA RAJAN
• Keywords: Set aside
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

, , [ : ] IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI [ CAMP: MADURAI ) . . . , ! ' # $% .'('), + ' , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER #./ ITA NO.2633/MDS/2014 ! ) .) / ASSESSMENT YEAR : 2007-08 THE TUTICORIN MELUR CO-OPERATIVE BANK LTD., 31-A, NORTH SAMBANTHAMOORTHY STREET, TUTICORIN 2. PAN : AAAAT 3076 C V. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE I, TUTICORIN. (01/ APPELLANT) (2301/ RESPONDENT) 01 4 5 / APPELLANT BY : SH. R. VIJAYARAGHAVAN, ADOCATE 2301 4 5 / RESPONDENT BY : SHRI S. RENGA RAJAN, JCIT 4 6+ / DATE OF HEARING : 16.02.2017 78. 4 6+ / DATE OF PRONOUNCEMENT : 16.02.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) II, MADU RAI, DATED 20.08.2014 AND PERTAINS TO ASSESSMENT YEAR 2007-08. 2 I.T.A. NO.2633/MDS/14 2. SH. R. VIJAYARAGHAVAN, THE LD.COUNSEL FOR THE AS SESSEE, SUBMITTED THAT THE PROVISION FOR BAD DEBT IS ALLOWA BLE AS STATUTORY DEDUCTION UNDER SECTION 36(1)(VIIA) OF THE INCOME-T AX ACT, 1961 (IN SHORT 'THE ACT'). HOWEVER, BY INADVERTENT ERROR, I T WAS NOT RAISED BEFORE THE LOWER AUTHORITIES, THEREFORE, THIS GROUN D IS RAISED BEFORE THIS TRIBUNAL BY WAY OF ADDITIONAL GROUND. THEREFO RE, THE LD.COUNSEL SUBMITTED THAT THE MATTER MAY BE REMITTED BACK TO T HE FILE OF THE ASSESSING OFFICER FOR VERIFICATION AND PASS ORDER O N MERIT. 3. SHRI S. RENGA RAJAN, THE LD. DEPARTMENTAL REPRES ENTATIVE, SUBMITTED THAT THIS GROUND WAS NEVER RAISED BEFORE THE LOWER AUTHORITIES, THEREFORE, THE LOWER AUTHORITIES HAD N O OCCASION TO CONSIDER THIS GROUND. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. ADMITTEDLY, SECTION 36(1)(VIIA) OF THE ACT PROVIDES FOR STATUTO RY DEDUCTION. MERELY BECAUSE THE ASSESSEE HAS NOT RAISED THE SAME BEFORE THE LOWER AUTHORITIES THAT CANNOT BE A REASON NOT TO CO NSIDER THE STATUTORY DEDUCTION. THIS TRIBUNAL IS OF THE CONSI DERED OPINION THAT THE MATTER NEEDS TO BE VERIFIED BY THE ASSESSING OF FICER. ACCORDINGLY, THE ORDER OF THE LOWER AUTHORITIES ARE SET ASIDE AND THE 3 I.T.A. NO.2633/MDS/14 ISSUE OF DEDUCTION CLAIMED BY THE ASSESSEE UNDER SE CTION 36(1)(VIIA) OF THE ACT IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RECONSIDER TH E ISSUE IN THE LIGHT OF THE STATUTORY PROVISIONS CONTAINED IN SECTION 36 (1)(VIIA) OF THE ACT AND PASS ORDER ON MERIT ON THE BASIS OF THE MATERIA L AVAILABLE ON RECORD, AFTER GIVING A REASONABLE OPPORTUNITY TO TH E ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH FEBRUARY, 2017 AT MADURAI. SD/- SD/- ($% .'(') ) ( . . . ) (ABRAHAM P. GEORGE) (N.R.S. GANESAN) + '/ ACCOUNTANT MEMBER ! ' /JUDICIAL MEMBER /MADURAI, :# /DATED, THE 16 TH FEBRUARY, 2017. KRI. 4 2!6 ;.6 /COPY TO: 1. 01 /APPELLANT 2. 2301 /RESPONDENT 3. <6 () /CIT(A)-I, MADURAI 4. <6 /CIT-II, MADURAI 5. = 2!6! /DR 6. >) ? /GF.