DCIT 24(1), MUMBAI V. AMIT TANDON, MUMBAI

ITA 3142/MUM/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2770 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 05-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A DYANI
• Keywords: Bad and doubtful debts; Tax effect; Revenue expenditure

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES A MUMBAI , , BEFORE SHRI RAJENDRA, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.3142/MUM/2014 ASSESSMENT YEAR 2009-10 THE DCIT-24(1), C-13, R.NO.503, PRATYAKSH KAR BHAVAN BANDRA (E),MUMBAI -51 (APPELLANT ) VS. SHRI AMIT TANDON, 1403/1404, D WAING, ROYAL CLASSIC, NEW LINK ROAD, ANDHERI (WEST), MUMBAI 400 053 PAN: ABZPT 3948C (RESPONDENT) APPELLANT BY : SHRI R.A. DYANI RESPONDENT BY : NONE DATE OF HEARING 29/10/2015 DATE OF PRONOUNCEMENT 29/10/2015 ORDER PER BEENA PILLAI J.M: THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER PASSED BY LD. CIT(A)-34, MUMBAI VIDE ORDER DATED 28/02/201 4, FOR ASSESSMENT YEAR 2009-10. THE REVENUE HAS RAISED THE FOLLOWING GROU NDS OF APPEAL:- 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE DISALLOWANCE OF RS .9,77,520/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF SUNDRY BALANCES W RITTEN OFF IGNORING THE FACT THAT THE SAID WRITTEN OFF PRESUPPOSES INCOME O FFERED IN THE EARLIER YEARS AND FAILURE ON THE PART OF THE ASSESSEE TO SUBSTANT IATE ITS CLAIM WITH ANY PROOF. ITA NO.3142/MUM/2014 ASSESSMENT YEAR 2009-10 2 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN HOLDING THE WRITE OF ADVANC E PAID AS REVENUE EXPENDITURE IGNORING THAT THE AMOUNT PAID AS ADVAN CE IS NOT ALLOWABLE AS REVENUE EXPENDITURE OR BAD DEBTS. 2. THE BRIEF FACTS OF THE CASE AS RECORDED BYTHE LD .AO ARE ARE AS UNDER. THE ASSESSEE HAD FILED ITS RETURN OF INCOME ON 30/9 /2009, DECLARING A TOTAL INCOME OF RS.14,76,070/-. SUBSEQUENTLY, THE RETURN WAS RE VISED AND A TOTAL INCOME OF RS.89,20,420/- WAS DECLARED VIDE RETURN OF INCOME DATED 18/12/2010. THE RETURN WAS PROCESSED UNDER SECTION 143(1) OF THE INCOME TA X ACT, 1961 (IN SHORT THE ACT) AND THE CASE WAS SELECTED FOR SCRUTINY. DURI NG THE ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER MADE CERTAIN ADDITIONS, TO AN EXTENT TO RS.1,06,06,570/-. AGGRIEVED BY THE ORDER OF ASSESSING OFFICER, THE AS SESSEE PREFERRED AN APPEAL BEFORE LD. CIT(A). 3. LD. CIT(A) GAVE PARTIAL RELIEF TO THE ASSESSEE, AND CONFIRMED THE ADDITION IN RESPECT OF CERTAIN AMOUNT, WHICH HAS BEEN WRITTEN O FF BY THE ASSESSEE AS SUNDRY BALANCES, AMOUNTING TO RS.9,77,520/-. AGGRIEVED BY THE ORDER OF LD. CIT(A), THE REVENUE IS IN APPEAL BEFORE US. 4. AT THE OUTSET, LD. DEPARTMENTAL REPRESENTATIVE S UBMITTED THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN RS.4.00 LACS AS PER THE WORKING OBTAINED FROM THE LD.AO. AS PER THE CBDT INSTRUCTION NO.5 OF 2014 DATED 10/07/2014, THE APPEAL IS NON-MAINTAINABLE DUE TO LOW TAX EFFECT. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LD. DE PARTMENTAL REPRESENTATIVE. THERE IS NO DOUBT THAT THE TAX EFF ECT IN THIS CASE IS RS.3,42,132/-. AS PER CBDT INSTRUCTION NO.5 OF 2014 DATED 10/7/201 4, AN APPEAL BEFORE THE TRIBUNAL CAN BE FILED WHERE THE TAX EFFECT EXCEED THE MONITORY LIMIT OF RS.4.00 LACS. ITA NO.3142/MUM/2014 ASSESSMENT YEAR 2009-10 3 6. FURTHER, THE REVENUE HAS NOT BEEN ABLE TO POINT OUT BEFORE US ANY CIRCUMSTANCES, AS LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF CIT CENT. III VS. SURYA HERBAL LTD REPORTED IN (2011) 1 5 SCC 482, BEING APPLICABLE TO THIS CASE WHICH WOULD LEAD TO NO-APPLICATION OF CBD T INSTRUCTION NO.5 OF 2014. THEREFORE, THE APPEAL FILED BY THE REVENUE IS DISMI SSED ON THE ISSUE OF LOW TAX EFFECT INVOLVED. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 29/10/20 15 29/10/2015 SD/- SD/- ( , /RAJENDRA ) ( /BEENA PILLAI) /ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; #$ DATED 29/10/2015 !' #$ / COPY OF THE ORDER FORWARDED TO : 1. %&'( / THE APPELLANT 2. )*'( / THE RESPONDENT. 3. +, ( %& ) / THE CIT(A)- 4. +, / CIT 5. -. ),$/0 , %&1 %/0 , / DR, ITAT, MUMBAI 6. 2 / GUARD FILE. / BY ORDER, *-&, ), //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI . $ . ./ VM , SR. PS