DCIT, New Delhi V. M/s Van Oord ACZ India Pvt. Ltd., Mumbai

ITA 4951/DEL/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 0580 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2004-2005
• Appeal Filed On: 11-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: REENA S PURI
• Keywords: Bad and doubtful debts
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH H NEW DELHI) BEFORE SHRI RAJPAL YADAV AND SHRI K.G. BANSAL I.T.A. NO.4951/DEL/2010 ASSESSMENT YEAR: 2004-05 DEPUTY CIT, VS. M/S. VAN OORD ACZ INDIA CIRCLE 17(1), PVT. LTD., 6 TH FLOOR, NEW DELHI. SHANGHI UDYAN, B-18, VAIKUNTHALAL MEHTA RD. JVPD SCHEME, MUMBAI-49 (PAN: AAACV 0555B) (APPELLANT) (RESPONDENT) DEPARTMENT BY : MS. REENA S. PUR I, CIT(DR) ASSESSEE BY : SHRI SACHIT JOLLY, AR ORDER PER RAJPAL YADAV: JUDICIAL MEMBER THE REVENUE IS IN APPEAL BEFORE US AGAINST THE ORDE R OF LEARNED CIT(APPEALS) PASSED FOR ASSESSMENT YEAR 2004-05. IN ITS SOLITARY GROUND OF APPEAL, REVENUE HAS PLEADED THAT LEARNED CIT(APPEAL S) HAS ERRED IN DELETING THE DISALLOWANCE OF BAD DEBTS AMOUNTING TO RS.14,66 ,14,578. 2. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET SUBMITTED THAT ASSESSEE COMPANY HAS FILED ITS RETURN OF INCOME ON 29.10.2004 DECLARING A LOSS OF ` 11,08,13,658. AN ASSESSMENT WAS PASSED UNDER SEC. 1 43(3) ON 22 ND DECEMBER, 2006 ON A LOSS OF ` (-) 6,93,31,639. LEARNED COMMISSIONER TOOK COGNIZANCE UNDER SEC. 263 OF THE ACT AND SET ASIDE THE ASSESSMENT ORDER VIDE HIS ORDER DATED 22 ND DECEMBER, 2006. THE ASSESSEE CHALLENGED THE ORDER OF 2 THE LEARNED COMMISSIONER PASSED UNDER SEC. 263 IN A N APPEAL BEFORE THE ITAT. THE ITAT QUASHED THE ORDER PASSED UNDER SEC. 263 IN ITA NO.1758/DEL/09 VIDE ITS ORDER DATED 26.3.2010. THE PRESENT ASSESSMENT ORDER IMPUGNED IN THIS APPEAL HAS BEEN PASSED IN PU RSUANCE TO 263 ORDER PASSED BY THE LEARNED COMMISSIONER. SINCE THE VERY BASIS OF THIS ASSESSMENT ORDER NO MORE SURVIVE, LEARNED CIT(APPEA LS) HAS RIGHTLY ALLOWED THE APPEAL OF THE ASSESSEE AND CANCELLED TH E ASSESSMENT ORDER. 3. LEARNED DR WAS UNABLE TO CONTROVERT THE CONTENTI ONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. 4. ON DUE CONSIDERATION OF THE FACTS AND CIRCUMSTAN CES, WE DO NOT FIND ANY MERIT IN THIS APPEAL BECAUSE THE ASSESSMENT ORD ER WAS PASSED IN PURSUANCE TO THE ORDER PASSED UNDER SEC. 263 BY THE LEARNED COMMISSIONER, THAT ORDER HAS ALREADY BEEN QUASHED BY THE ITAT, TH EREFORE, NO ASSESSMENT ORDER IN CONSEQUENCE TO ORDER PASSED UNDER SEC. 26 3 CAN BE PASSED. THE ASSESSMENT ORDER DESERVES TO BE CANCELLED. LEARNED CIT(APPEALS) HAS RIGHTLY CANCELLED IT. THE APPEAL OF THE REVENUE IS DISMISSE D. DECISION PRONOUNCED IN THE OPEN COURT ON 21.01.2011 ( K.G. BANSAL ) ( RAJPAL YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 21/01/2011 MOHAN LAL 3 COPY FORWARDED TO: 1) APPELLANT 2) RESPONDENT 3) CIT 4) CIT(APPEALS) 5) DR:ITAT ASSISTANT REGISTRAR