The ACIT,A'bad Circle-3, Ahmedabad V. M/s. Madhur Share & Stock Pvt.Ltd., Ahmedabad

ITA 2913/AHD/2010

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68091 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 19-12-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 20-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K DHANESTHA
• Keywords: Bad and doubtful debts

Judgement Text

, , , , , , , , IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BENCH, AHMEDABAD .., ! '# '# '# '# $ %&, ! BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER #./ I.T.A. NO.2913/AHD/2010 ( ( ')( ( ')( ( ')( ( ')( / / / / ASSESSMENT YEAR : 2006-07) THE ACIT CIRCLE-3, AHMEDABAD / VS. MADHUR SHARES & STOCK PVT.LTD. 3 RD FLOOR, MADHUR COMPLEX STADIUM CIRCLE NAVRANGPURA, AHMEDABAD !* #./+, #./ PAN/GIR NO. : AABCM 5449 D ( *- / // / APPELLANT ) .. ( ./*- / RESPONDENT ) *- 0 / APPELLANT BY : SHRI R.K. DHANESTHA, SR.D.R. ./*- 1 0 / RESPONDENT BY : SHRI BANDISH SOPARKAR, A.R. $'2 1 & / / / / DATE OF HEARING : 19/12/2013 34) 1 & / DATE OF PRONOUNCEMENT : 31/12/2013 5 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-GANDHINAGAR (CIT(A) FOR SHORT) DATED 25/08/2010 PERTAINING TO ASSESSMENT Y EAR (AY) 2006-07. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APP EAL:- I) THE LD.CIT(A) ERRED IN LAW AND ON FACT IN DELETING THE DISALLOWANCE OF RS.57,52,363/- MADE U/S.36(2) R.W.S . 36(1)(VII) OF THE I.T. ACT ON ACCOUNT OF CLAIM OF BAD DEBTS. II) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESS ING OFFICER SINCE THE ASSESSEE HAS FILED TO DISCLOSE HIS TRUE I NCOME. ITA NO.2913/AHD /2010 ACIT VS. MADHUR SHARES & STOCK PVT.LTD. ASST.YEAR 2006-07 - 2 - 2. BRIEFLY STATED FACTS ARE THAT THE CASE OF THE AS SESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S.143( 3) OF THE INCOME TAX ACT,1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VIDE ORDER DATED 19/12/2008, THEREBY THE ASSESSING OFFICER(AO) MADE DISALLOWANCE OF BAD DEBT AMOUNTING TO RS.57,52,363/- AND ALSO TH E DISALLOWANCE OF TRADING LOSS AMOUNTING TO RS.33,47,802/-. AGAINST THE ASSESSMENT ORDER, THE ASSESSEE FILED AN APPEAL BEFORE THE LD.CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, PARTLY ALLOWED THE APPEAL THEREBY THE ADDITION OF RS.57,52,363/- WAS DIRECTED TO BE DELET ED. 3. THE ONLY GROUND IN THE REVENUES APPEAL IS AGAIN ST THE DELETION OF RS.57,52,363/- MADE U/S.36(2) R.W.S. 36(1)(VII) OF THE ACT ON ACCOUNT OF CLAIM OF BAD DEBTS. 3.1. THE SR.DR STRONGLY RELIED ON THE ORDER OF THE AO, WHEREAS THE LD.COUNSEL FOR THE ASSESSEE RELIED ON THE ORDER OF THE LD.CIT(A) AND SUBMITTED THAT THIS ISSUE IS SQUARELY COVERED IN FA VOUR OF ASSESSEE BY THE DECISION OF HONBLE COORDINATE BENCH (ITAT AHMEDABA D BENCH B) RENDERED IN ASSESSEES OWN CASE BEARING ITA NOS.615 & 704/AHD/2005 FOR AY 2001-02, DATED 31/05/2010. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE LD.CIT(A) HAS FOLLOWED THE DECISION OF THE HON BLE COORDINATE BENCH RENDERED IN ASSESSEES OWN CASE BEARING ITA N OS.615 & 704/AHD/2005(SUPRA). THE LD.CIT(A) HAS REPRODUCED THE FINDINGS OF THE ITA NO.2913/AHD /2010 ACIT VS. MADHUR SHARES & STOCK PVT.LTD. ASST.YEAR 2006-07 - 3 - HONBLE COORDINATE BENCH IN HIS ORDER. THIS FACT I S NOT CONTROVERTED BY THE LD.SR.DR. THE LD.SR.DR COULD NOT POINT OUT AS TO HOW THE DECISION OF THE HONBLE COORDINATE BENCH IN ASSESSEES OWN CASE (SUPRA) IS NOT APPLICABLE ON THE FACTS AND CIRCUMSTANCES OF THE PR ESENT CASE. WE FIND THAT THE FACTS ARE SIMILAR AS WERE THAT IN THE AY 2 001-02 IN ASSESSEES OWN CASE. SINCE THE LD.SR.DR COULD NOT POINT OUT ANY CHANGE IN THE FACTS AND CIRCUMSTANCES, THEREFORE WE DO NOT FIND A NY REASON TO TAKE A CONTRARY VIEW THAN TAKEN BY THE COORDINATE BENCH IN ITA NOS.615 & 704/AHD/2005(SUPRA). RESPECTFULLY FOLLOWING THE SA ID DECISION OF COORDINATE BENCH, THIS GROUND OF REVENUES APPEAL I S REJECTED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN COURT ON THE DATE MENTIONED HER EINABOVE AT CAPTION PAGE SD/- SD/- ( .. ) ($ %&) ! ! ( N.S. SAINI ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 31/12/2013 8.., '.../ T.C. NAIR, SR. PS 5 1 .&9 :9)& 5 1 .&9 :9)& 5 1 .&9 :9)& 5 1 .&9 :9)&/ COPY OF THE ORDER FORWARDED TO : 1. *- / THE APPELLANT 2. ./*- / THE RESPONDENT. 3. ## & $; / CONCERNED CIT 4. $;() / THE CIT(A)-GANDHINAGAR 5. 9'%< .& , , / DR, ITAT, AHMEDABAD 6. <( =2 / GUARD FILE. 5$ 5$ 5$ 5$ / BY ORDER, /9& .& //TRUE COPY// > >> >/ // / #+ #+ #+ #+ ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD