Kerala Minerals & metals Ltd, Kollam V. ACIT, Kollam

ITA 381/COCH/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64780 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 11-09-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 18-05-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B SAJJIEVE
• Assessee Lawyers: RADHESH BHATT
• Keywords: Bad and doubtful debts
• Section: 263

Judgement Text

1 ITA NO.381/COCH/2011 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKARA N(AM) I.T.A NO. 381/COCH/2011 (ASSESSMENT YEAR 2006-07) KERALA MINERALS & METALS LTD VS THE A.C.I.T., CIR .1 M/S VARMA & VARMA, CAS KOLLAM A-12, KOSDIAR GARDENS GOLF LINK ROAD, KOWDIAR THIRUVANANTHAPURAM-695 003 PAN : AAACT8118R (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RADHESH BHATT RESPONDENT BY : SHRI B SAJJIEVE DATE OF HEARING : 11-09-2012 DATE OF PRONOUNCEMENT : 14-09-2012 O R D E R PER N.R.S. GANESAN (JM) BEING AGGRIEVED BY THE ORDER OF THE ADMINISTRATIVE COMMISSIONER DATED 14-03-2011 FOR THE ASSESSMENT YEAR 2006-07, THE TAXPAY ER FILED THE PRESENT APPEAL BEFORE THIS TRIBUNAL. 2. SHRI RADHESH BHATT, THE LD.REPRESENTATIVE FOR TH E TAXPAYER SUBMITTED THAT THE TAXPAYER HAS FILED ALL THE DETAILS WITH REGARD TO SUNDRY CREDITORS, TRADE DEBTORS, ETC. THE LD.REPRESENTATIVE FURTHER SUBMIT TED THAT THE TAXPAYER HAS DISCLOSED ALL THE BAD DEBTS / ADVANCES WHICH WERE A DJUSTED AGAINST THE PROVISION 2 ITA NO.381/COCH/2011 IN THE RETURN OF INCOME FILED IN THE REGULAR COURSE . HOWEVER, THE ASSESSING OFFICER HAS NOT DISCUSSED ANYTHING IN THE ASSESSMENT ORDER ABOUT THE BAD DEBT / ADVANCES ADJUSTED AGAINST THE PROVISION. THEREFORE , THE ADMINISTRATIVE COMMISSIONER FOUND THAT THE ASSESSING OFFICER HAS N OT APPLIED HIS MIND. ACCORDING TO THE LD.REPRESENTATIVE, THE TAXPAYER HA S FILED ALL THE DETAILS ALONG WITH THE RETURN OF INCOME, THEREFORE, MERELY BECAUS E THE ASSESSING AUTHORITY HAS NOT DISCUSSED THE SAME IN THE ASSESSMENT ORDER, IT CANNOT BE SAID THAT THERE IS AN ERROR IN THE ORDER SO AS TO BE PREJUDICIAL TO THE I NTEREST OF THE REVENUE. WE HEARD THE LD.DR ALSO. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND ALS O PERUSED THE MATERIAL AVAILABLE ON RECORD. ADMITTEDLY, THE BAD DEBT / AD VANCE ADJUSTED AGAINST THE PROVISION WAS NOT CONSIDERED BY THE ASSESSING OFFIC ER. THERE IS NO REFERENCE OR MENTION IN THE ASSESSMENT ORDER ABOUT THE BAD DEBT / ADVANCE. ASSESSMENT ORDER BEING A QUASI JUDICIAL ORDER, IT SHALL REFLEC T THE APPLICATION OF MIND BY THE ASSESSING AUTHORITY. THE CONCLUSION REACHED IN THE ASSESSMENT ORDER SHALL BE SUPPORTED BY REASONS IN THE ASSESSMENT ORDER ITSELF . THE CONCLUSION REACHED IN THE ASSESSMENT ORDER CANNOT BE SUPPORTED BY ANY OTH ER DOCUMENT FILED OR BY FILING AN AFFIDAVIT. IN OTHER WORDS, JUDICIAL ORDE R SHALL CONTAIN THE REASON FOR ITS CONCLUSION IN THE ORDER ITSELF. FROM A BARE READI NG OF THE ASSESSMENT ORDER IT IS OBVIOUS THAT THE ASSESSING OFFICER HAS NOT CONSIDER ED THE ISSUE RELATING TO BAD DEBT / ADVANCES. THEREFORE, IT IS CLEAR THAT THE A SSESSING AUTHORITY HAS NOT APPLIED HIS MIND TO THE FACTS OF THE CASE. SINCE T HE APPLICATION OF MIND HAS NOT BEEN REFLECTED IN THE ASSESSMENT ORDER, THIS TRIBUN AL IS OF THE OPINION THAT THE ADMINISTRATIVE COMMISSIONER HAS RIGHTLY REVISED THE ORDER U/S 263 OF THE INCOME- TAX ACT. A SIMILAR VIEW WAS TAKEN BY THE APEX COURT IN THE CASE OF MALABAR INDUSTRIAL CO LTD VS COMMISSIONER OF INCOME-TAX 243 ITR 83 (SC). IN VIEW OF THE 3 ITA NO.381/COCH/2011 ABOVE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LOWER AUTHORITY. ACCORDINGLY THE SAME IS CONFIRMED. 4. IN THE RESULT, APPEAL OF THE TAXPAYER STANDS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 14 TH SEPTEMBER, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 14 TH SEPTEMBER, 2012 PK/- COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE COMMISSIONER OF INCOME-TAX 4. THE COMMISSIONER OF INCOME-TAX(A) 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH