DCIT CIR 3(1), MUMBAI V. DBS FINANCIAL SERVICES P. LTD, MUMBAI

ITA 3610/MUM/2010

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 7978 (ITAT-MUMBAI)
• Duration Of Justice: 7 year(s) 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 08-12-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 06-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARUN G VERMADR
• Assessee Lawyers: PURUSHOTTAM KUMAR SR
• Keywords: Business income; Bad and doubtful debts

Judgement Text

, , , , INCOME-TAX APPELLATE TRIBUNAL DBENCH M UMBAI , , BEFORE S/SH. RAJENDRA,ACCOUNTANT MEMBER & RAVISH SOOD, JUDICIAL MEMBER ./I.T.A./3610/MUM/2010 , /ASSESSMENT YEAR: 2004-05 DCIT CIRCLE-3(1) ROOM NO.607, 6 TH FLOOR AAYAKAR BHAVAN, MUMBAI-400 020. VS. M/S. DBS FINANCIAL SERVICES PVT.LTD. RAHEJA CHAMBERS, 2 ND FLOOR NARIMAN POINT, MUMBAI-400 021 PAN:AAACD 0540 P ( /APPELLANT ) ( / RESPONDENT ) ./I.T.A./3235/MUM/2010 , /ASSESSMENT YEAR: 2004-05 M/S. DBS FINANCIAL SERVICES PVT.LTD. NARIMAN POINT, MUMBAI-400 021. VS. DCIT CIRCLE-3(1),ROOM NO.607, 6 TH FLOOR AAYAKAR BHAVAN, MUMBAI-400 020. ( /APPELLANT ) ( / RESPONDENT ) REVENUE BY: SHRI ARUN G. VERMA-DR ASSESSEE BY: SHRI PURUSHOTTAM KUMAR-SR.AR / DATE OF HEARING: 20/12/2017 / DATE OF PRONOUNCEMENT: 20/12/2017 ,1961 254(1) ORDER U/S.254(1)OF THE INCOME-TAX ACT,1961(ACT) , - PER RAJENDRA, AM - CHALLENGING THE ORDER, DATED 04/02/2010 OF THE CIT( A)-7 MUMBAI,THE ASSESSING OFFICER (AO)AND THE ASSESSEE HAVE FILED CROSS APPEALS FOR T HE ABOVE MENTIONED ASSESSMENT YEAR (AY.)ASSESSEE-COMPANY,ENGAGED IN THE BUSINESS OF RU NNING BUSINESS CENTRES,FILED ITS RETURN OF INCOME ON 27/10/2004,DECLARING LOSS OF RS.1,23,8 9,773/-.THE AO COMPLETED ASSESSMENT ON,22/12/2006,DETERMINING THE INCOME OF THE ASSESSE E AT RS.2.92 CRORES,U/S.143(3) OF THE ACT. THE EFFECTIVE GROUND OF APPEAL IN BOTH THE APPEALS IS ABOUT REGARD TO PENALTY U/S. 271(1)(C) OF THE ACT I.E.DELETING THE PENALTY OR CONFIRMING THE PENALTY.SO,WE ARE ADJUDICATING BOTH THE APPEALS TOGETHER. 2. IN HIS APPEAL(ITA NO.3610/M/2010:),THE AO HAS RAISE D THREE GROUNDS OF APPEAL.GROUND NO.1 DEALS WITH DELETING THE PENALTY IN RESPECT OF DISALLOWANCE OF RS.3,16,87,608/- UNDER THE HEAD BAD DEBTS WRITTEN OFF.NEXT GROUND IS ABOUT DEL ETING THE PENALTY ABOUT ADDITION MADE ON ACCOUNT OF INTEREST EARNED ON ACCRUAL BASIS AND THE LAST GROUND PERTAINS TO DELETION OF PENALTY IN RESPECT OF ADDITION OF INTEREST AMOUNTING TO RS. 2,82,492/- ON DEPOSITS WITH RESPECT TO LET OUT HOUSE PROPERTY. 3610-3235/M/10-M/S. DBS FINANCIAL SERVICES PVT.LTD. 2 THE ASSESSEE(ITA/3225/MUM/2010)HAS CHALLENGED THE C ONFIRMATION OF PENALTY BY THE CIT (A) IN RESPECT OF BUSINESS INCOME AND HOUSE PROPERT Y INCOME. 3. BEFORE US, THE AUTHORISED REPRESENTATIVE (AR) AS WE LL AS THE DEPARTMENTAL REPRESENTATIVE (DR)AGREED THAT IN THE QUANTUM APPEAL(ITA/372/MUM/2 008 ORDER,DATED 31/7/2017)FOR AY. 2004-05,THE TRIBUNAL HAS RESTORED BACK ALL THE ISSU ES,FOR WHICH PENALTY WAS CONFIRMED OR WAS DELETED BY THE CIT(A),TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION. CONSIDERING THE ABOVE,WE ARE OF THE OPINION THAT PE NALTY ORDER OF THE FIRST APPELLATE AUTHORITY(FAA)WOULD NOT SURVIVE ANYMORE.THEREFORE,W E DISMISS BOTH THE APPEALS.DEPART- MENTAL AUTHORITIES WILL BE FREE TO DECIDE THE ISSUE OF LEVY OF PENALTY IN THE DE NOVO PROCEEDINGS. AS A RESULT,APPEALS FILED BY THE ASSESSEE AND THE A O STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH DECEMBER,2017. 20 , 2017 SD/- SD/- ( (( ( /RAVISH SOOD) ( / RAJENDRA) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; /DATED :20.12..2017. JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR D BENCH, ITAT, MUMBAI / , , . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.