NATIONAL JEWELLERS, MUMBAI V. ADDL CIT RG 14(2), MUMBAI

ITA 4545/MUM/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 3053 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 02-07-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RANDHIR GUPTA
• Assessee Lawyers: MINITA JAIN
• Keywords: Bad and doubtful debts
• Section: 143(3); 37(1)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI BEFORE SHRI R.C. SHARMA(AM) AND SHRI SANDEEP GOSAIN (JM) ITA NO. 4545/MUM/2014 ASSESSMENT YEAR: 2007-08 NATIONAL JEWELLERS VS. ADDL CIT, RANGE 14(2) LAXMI HOUSE, IST FLOOR, EARNEST HOUSE 177/179 KALBADEVI ROAD, MUMBAI MUMBAI PAN NO. AACFN1487C (APPELLANT) (RESPONDENT) APPELLANT BY : MS. MINITA JAIN RESPONDENT BY : SHRI RANDHIR GUPTA DATE OF HEARING : 28/07/201 6 DATE OF PRONOUNCEMENT : 21/09/2016 O R D ER PER SANDEEP GOSAIN, JM : THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF THE ORDER OF LD. CIT(A)- 25, MUMBAI IN APPEAL NO. CIT(A)-25/IT-83/DC14(2)/20 12-13 DT. 01/10/2013. ASSESSMENT WAS FRAMED BY DCIT 14(2), MUMBAI FOR THE AY 2007-08 VIDE HIS ORDER DT. 31/10/2012, UNDER SECTION 143(3) R.W.S 26 3 OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT). 2 2. BRIEF FACTS OF THE CASE ARE THAT ASSESSMENT IN T HIS CASE WAS COMPLETED UNDER SECTION 143(3) ON 12/11/2009 AT TOT AL INCOME OF RS. 3,93,461/- ON THE BASIS OF REVISED STATEMENT OF INC OME DECLARING INCOME OF RS. 3,93,460/- FILED AS AGAINST THE INCOME OF RS . 22,40,993/-, DECLARED IN THE ORIGINAL RETURN OF INCOME. LATER ON THE ABOVE A SSESSMENT ORDER WAS FOUND TO BE ERRONEOUS AND PREJUDICIAL TO THE INTERE ST OF REVENUE THEREFORE THE LD. CIT, CITY 14, SET ASIDE THE ASSESSMENT UNDE R SECTION 263 WITH A DIRECTION TO DECIDE THE ALLOWABILITY OF BAD DEBTS OF RS. 30,79,230/-. THEREAFTER ON THE BASIS OF ORDERS PASSED UNDER SECT ION 263, ASSESSMENT ORDER UNDER SECTION 143(3) R.W.S 263 OF THE INCOME TAX ACT, 1961 WAS PASSED BY THE ITO ON 31/10/2012 THEREBY MAKING ADDI TION. 3. AGGRIEVED BY THE ORDER OF AO THE ASSESSEE PREFER RED APPEAL BEFORE THE LD. CIT(A) AFTER CONSIDERING THE CASE OF BOTH THE PARTIES THE LD. CIT(A) DISMISSED THE APPEAL AND UPHELD THE ORDER OF ASSESSING OFFICER PASSED UNDER SECTION 143 (3) R.W.S 263 OF THE INCOM E TAX ACT 4. AGGRIEVED BY THE ORDER OF CIT(A) THE ASSESSEE HA S PREFERRED APPEAL BEFORE US ON THE FOLLOWING GROUNDS: 1. THE LEARNED ASSESSING OFFICER ERRED IN DISALLOWING R S. 30,79,230/- AS BAD DEBTS & THE LEARNED CIT APPEAL ERRED IN CONFIRMING THE SAME . 2. THE LEARNED ASSESSING OFFICER FAIL TO CONSIDER THE F ACT THAT THE DEDUCTION COULD ALTERNATIVE BE ALLOWED AS BUSINESS LOSS U/S 37(1) & THE CIT APPEAL ERRED IN CONFIRMING THE SAME. 3 5. AT THE VERY OUTSET THE LD. AR APPEARING ON BEHAL F OF THE ASSESSEE AND SUBMITTED AN APPLICATION DT. 27/07/2016, THE CO NTENTS OF WHICH IS REPRODUCED BELOW: HON'BLE SIR REF- ITA NO. 4545/2014 W.R.T M/S NATIONAL JEWELLERS FOR A.Y. 2007-08 SUB: APPLICATION FOR FILING APPELLATE ORDER. THE ABOVE APPEAL HAS BEEN FIXED BEFORE THE HON'BLE BENCH ON 28/07/2016. IN THIS CONNECTION, IT IS RESPECTFULLY SUBMITTED THAT THE ABOVE APPEAL HAS BEEN ARISING OUT OF ASSESSMENT ORDER U/S 143(3) PASSED N PURSUANCE THE LD. CIT 263 ORDER AND SINCE THE ORDER U/S 263 HAS ALREADY BEEN QUASHED BY THE HON'BLE B BENCH VIDE ITA NO. 36 33/2012 VIDE ORDER DT. 03/02/2016, COPY OF THE ORDER ARE BEING ENCLOSE D. THEREFORE, IT IS REQUESTED THAT IN VIEW OF I.T.A.T. ORDER, THE ASSES SMENT ORDER U/S 143(3) / 263 MAY ALSO PLEASE BE QUASHED. IT IS THEREFORE, HUMBLY PRAYED THAT THE ABOVE APPEA L MAY KINDLY BE ALLOWED BY QUASHING THE ORDER U/S 143(3)/263 IN THE INTEREST OF JUSTICE. PRAYED ACCORDINGLY, YOURS FAITHFULLY, FOR ON BEHALF OF M/S NATIONAL JEWELLERS THROUGH V.K. TULSIAN, FCA (A/R) SD/- MINITA JAIN, ACA, (ASSISTANT TO A/R) PLACE : MUMBAI (CAMP) DATE: 27/07/2016 ENCLOSED: COPY OF ITAT ORDER THE ABOVE APPLICATION IS ALSO ANNEXED WITH THE COPY OF THE ORDER PASSED BY HON'BLE I.T.A.T. MUMBAI BENCH. WE HAVE GONE THRO UGH THE ORDER PASSED BY THE HON'BLE TRIBUNAL AND CONSIDERING THE ORDERS OF I.T.A.T.; AND WHILE TAKING INTO CONSIDERATION THE CONTENTS OF THE APPLICATION WE HOLD THAT THE PRESENT APPEAL FILED BY THE ASSESSEE HAS B ECOME IN FRUCTUOUS. IN 4 VIEW OF THE FACT THAT THE ORDER UNDER SECTION 263 H AS ALREADY BEEN QUASHED BY HON'BLE B BENCH IN ITA NO. 3633/MUM/20 12 VIDE ORDER DT. 03/02/2016. THEREFORE, IN VIEW OF THE AFOREMENTIONE D LEGAL POSITION WE DISMISS THE PRESENT APPEAL AS IN FRUCTUOUS. 6. IN THE RESULT APPEAL OF THE ASSESSEE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 21 SEPTEMBER , 2016. SD/- SD/- (R.C. SHARMA) (SANDEEP GOSAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED: 21/09/2016 AG (ON TOUR) COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI 5 DICTATION PAD ATTACHED DATE INITIAL 1. DRAFT DICTATED ON 28/07/2016 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 28/07/2016 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. DATE OF PRONOUNCEMENT 21/09/2016 SR.PS 7. FILE SENT TO THE BENCH CLERK 21/09/2016 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER