M/s. Saifco Cements Pvt. Ltd., Kashmir V. The Deputy Commissioner of Income Tax, Kashmir

ITA 279/ASR/2013

• Counselvise Citation: 27920914 RSA 2013
• Duration Of Justice: 10 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 05-03-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 29-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMRIK CHAND
• Keywords: Bad and doubtful debts
• Section: 115JB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P. JAIN, ACCOUNTANT MEMBER I.T.A. NO. 279 (ASR)/2013 ASSESSMENT YEAR: 2007-08 PAN: AAECS8832M M/S SAIFCO CEMENTS PVT. LTD. VS. DY. COMMISSIONER OF OPPOSITE POST OFFICE, BATWARA, INCOME TAX, CIRCL E-3, SRINAGAR, KASHMIR SRINAGAR, KASHMIR (APPELLANT) (RESPONDENT) APPELLANT BY: SH. SUNIL KUMAR BHATT, CA RESPONDENT BY: SH. AMRIK CHAND, DR DATE OF HEARING: 05.03.2014 DATE OF PRONOUNCEMENT: 05.03.2014 ORDER PER BENCH 1. THE ASSESSEE FILED THE PRESENT APPEAL AGAINST TH E IMPUGNED ORDER DATED 07.02.2013 PASSED BY LEARNED CIT(A), JA MMU, FOR THE ASSESSMENT YEAR 2007-08 ON THE FOLLOWING GROUNDS: I. THAT THE APPEAL IS IN TIME. II. THAT THE ORDER OF THE LEARNED COMMISSIONER OF INCOM E TAX(APPEALS) IS AGAINST FACTS OF THE CASE & ITS MER ITS. III. THAT THE LEARNED APPELLATE AUTHORITY HAS ERRED IN N OT ALLOWING GENUINE RELIEF TO THE ASSESSEE AND INSTEAD HAS PROC EEDED TO DISALLOW THE RELIEF SOUGHT BY THE ASSESSEE IN AN ARBITRARY M ANNER. IV. THAT THE LEARNED APPELLATE AUTHORITY HAS ERRED IN C ONFIRMING DISALLOWANCE OF RS. 30,24,592/- AS BAD DEBTS WRITTE N OFF BY THE COMPANY IN THE BOOKS OF ACCOUNT WHICH IS CONTRARY T O THE DECISION OF HON'BLE SUPREME COURT IN TRF LIMITED VS. CIT (20 10) 230 CTR 14 (SC). 2 I.T.A. NO. 279 (ASR)/2013 ASSESSMENT YEAR: 2007-08 V. THAT THE ADDITION OF RS. 80,84,756/- TO THE BOOK PR OFIT U/S 115JB ON ACCOUNT OF DISALLOWANCE OF PROVISIONS MADE TOWAR DS LIABILITY FOR EMPLOYEES PROVIDENT FUND AND RETIREMENT BENEFIT S IS ARBITRARY AND AGAINST THE PRINCIPLES OF LAW LAID DOWN IN THIS REGARD. VI. THAT THE ORDER OF THE LEARNED APPELLATE AUTHORITY I N DISPOSING OFF THE APPEAL WITHOUT DECIDING THE MERITS OF EACH GROU NDS OF APPEAL IS AGAINST THE PRINCIPLES LAID DOWN BY THE HON'BLE COU RTS IN THE CASE OF CIT VS. CHENNAIPPA 741 ITR 41 (SC) AND GUJARAT T HEMIS BIOSYN LTD. VS. JT. CIT 74 ITD 339 (AHD.). VII. THAT THE ASSESSEE CRAVES LEAVE TO AMEND, ALTER OR T O RAISE ANY OTHER GROUNDS AT THE TIME OF HEARING OF APPEAL. 2. THE FACTS NARRATED BY THE REVENUE AUTHORITY ARE NOT DISPUTED BY BOTH THE PARTIES; THEREFORE, THERE IS NO NEED TO RE PEAT THE SAME. 3. AT THE TIME OF HEARING, LEARNED COUNSEL FOR THE ASSESSEE STATED THAT THE LEARNED FIRST APPELLATE AUTHORITY HAS NOT GIVEN SUFFICIENT OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CLA IM BEFORE THE APPELLATE PROCEEDINGS. HE REQUESTED THAT SOME MORE OPPORTUNIT Y MAY BE GIVEN TO THE ASSESSEE TO REPRESENT ITS CASE BEFORE THE LEARN ED FIRST APPELLATE AUTHORITY. HE ALSO UNDERTAKES THAT THE ASSESSEE WIL L FULLY COOPERATE AND APPEAR BEFORE THE LEARNED FIRST APPELLATE AUTHORITY AND WILL NOT SEEK UNNECESSARY ADJOURNMENT. 4. LEARNED DR RELIED UPON THE IMPUGNED ORDER PASSED BY LEARNED FIRST APPELLATE AUTHORITY. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ELEVANT RECORDS AVAILABLE WITH US, ESPECIALLY THE IMPUGNED ORDER PA SSED BY LEARNED FIRST 3 I.T.A. NO. 279 (ASR)/2013 ASSESSMENT YEAR: 2007-08 APPELLATE AUTHORITY AND WE ARE OF THE CONSIDERED VI EW THAT NO DOUBT THE ASSESSEE REMAINED NON-COOPERATIVE BEFORE THE LEARNE D FIRST APPELLATE AUTHORITY AND DID NOT APPEAR IN SPITE OF THE VALID SERVICE FOR THE FIXATION OF APPEAL BEFORE THE LEARNED CIT(A), JAMMU. AS STAT ED BY THE LEARNED COUNSEL FOR THE ASSESSEE AT THE BAR BEFORE THIS BEN CH, HE AND THE ASSESSEE WILL FULLY COOPERATE BEFORE THE LEARNED FIRST APPEL LATE AUTHORITY AND WILL NOT SEEK ANY UNNECESSARY ADJOURNMENT AND REQUESTED FOR SETTING ASIDE THE ISSUE IN DISPUTE TO THE LEARNED FIRST APPELLATE AUT HORITY TO DECIDE THE SAME AFRESH AND FURTHER REQUESTED FOR GRANTING SOME MORE OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CLAIM BEFORE LEARNED C IT(A), JAMMU. 6. KEEPING IN VIEW THE FACTS AND CIRCUMSTANCES OF T HE PRESENT CASE AND THE STATEMENT MADE BY LEARNED COUNSEL FOR THE A SSESSEE AT BAR BEFORE THE BENCH, WE ARE OF THE VIEW THAT, IN THE INTEREST OF JUSTICE, THE ISSUE IN DISPUTE DESERVES BE SET ASIDE TO THE LEARNED CIT(A) , JAMMU, TO DECIDE THE SAME AFRESH UNDER THE LAW. ACCORDINGLY, WE SET ASID E THE ISSUE IN DISPUTE TO LEARNED CIT(A), JAMMU, TO THE DECIDE THE SAME AF RESH UNDER THE LAW, AFTER GIVING ADEQUATE OPPORTUNITY TO THE ASSESSEE. BUT AS PER RECORD THE ASSESSEE REMAINED NON-COOPERATIVE BEFORE THE LEARNE D FIRST APPELLATE AUTHORITY, WE THINK IT PROPER TO IMPOSE COMPENSATOR Y COST OF RS. 1,000/- (RS. ONE THOUSAND ONLY) UPON THE ASSESSEE AND THE A SSESSEE IS DIRECTED TO 4 I.T.A. NO. 279 (ASR)/2013 ASSESSMENT YEAR: 2007-08 DEPOSIT THE SAME IN THE CENTRAL GOVERNMENT ACCOUNT AFTER OBTAINING CHALLAN FROM THE SAID ASSESSING OFFICER. THE LEARNE D CIT(A) WILL TAKE UP HEARING AFRESH AFTER ENSURING THAT THE ASSESSEE HAS DEPOSITED THE AMOUNT OF COST IMPOSED. 7. WITH THESE OBSERVATIONS, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES, AS INDICATED ABOV E. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH MARCH, 2014 SD/./- SD/./- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 5 TH MARCH, 2014 /RK/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: M/S SAIFCO CEMENTS PVT. LTD., OPPOSI TE POST OFFICE, BATWARA, SRINAGAR, KASHMIR 2. DY. COMMISSIONER OF INCOME TAX, CIRCLE-3, SRINAGAR, KASHMIR 3. THE CIT(A), 4. THE CIT, 5. THE SR DR, I.T.A.T., TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.