Deccan Agency, CHENNAI V. ACIT, CHENNAI

ITA 500/CHNY/2014

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6154 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 27-02-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: T N BETGERI
• Assessee Lawyers: R VIJAYARAGHAVAN
• Keywords: Bad and doubtful debts
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , . . !' , # '$ % BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENTAND SHRI S.S. GODARA, JUDICIAL MEMBER ./ ITA NO. 500/MDS/2014 # & '& / ASSESSMENT YEAR : 2007-08 M/S DECCAN AGENCY, NO.24/46, DR. B.N. ROAD, T. NAGAR, CHENNAI - 600 017. PAN : AAAFD 2959 F V. THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE III(4), CHENNAI - 600 034. ()*/ APPELLANT) (,-)*/ RESPONDENT) )* . / APPELLANT BY : SHRI R. VIJAYARAGHAVAN, ADVOCATE ,-)* . / RESPONDENT BY : SHRI T.N. BETGERI, JCIT / . 01 / DATE OF HEARING : 7 TH MAY, 2014 2!' . 01 / DATE OF PRONOUNCEMENT : 12 TH MAY, 2014 / O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT THIS APPEAL FILED BY THE ASSESSEE RELATES TO ASSE SSMENT YEAR 2007-08. THE APPEAL IS DIRECTED AGAINST THE O RDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)(C)-II AT CHENN AI, PASSED ON 23.12.2013. THE APPEAL ARISES OUT OF THE ASSESS MENT COMPLETED UNDER SECTION 143(3) OF THE INCOME-TAX AC T, 1961. - - I.T.A. NO. 500/MDS/14 2 2. THE GROUND RAISED BY THE ASSESSEE IN THE PRESENT APPEAL IS THAT THE COMMISSIONER OF INCOME TAX (APPEALS) HA S ERRED IN CONFIRMING THE DISALLOWANCE OF BAD DEBTS CLAIMED BY THE ASSESSEE TO THE EXTENT OF ` 7,36,846/-. IT IS A CASE OF THE ASSESSEE THAT THE AMOUNT REPRESENTED DEPOSIT MADE I N THE COURSE OF BUSINESS FOR PURCHASE OF LOTTERY TICKETS, WHICH WAS THE BUSINESS OF THE ASSESSEE. THIS DEPOSIT BECAME IRRE COVERABLE AND THEREFORE, IT WAS WRITTEN OFF AS BAD DEBT. IT IS ALSO A CASE OF THE ASSESSEE THAT THE AMOUNT OF ADVANCE GIVEN IN TH E COURSE OF BUSINESS, WHICH HAS BECOME IRRECOVERABLE, IS ALLOWA BLE AS BAD DEBT OR BUSINESS LOSS. 3. SHRI R. VIJAYARAGHAVAN, THE LEARNED COUNSEL APPE ARED FOR THE ASSESSEE AND ARGUED THE CASE. HE HAS PLACED RE LIANCE ON THE FOLLOWING DECISIONS:- (I) CIT V. INDENE BISELERS 181 ITR 69 (MAD) (II) CIT V. CRESCENT FILMS (P.) LTD. 248 ITR 670 ( MAD) (III) DEVI FILMS LTD. V. CIT 75 ITR 301 (MAD) (IV) CIT V. KERALA FINANCIAL CORPORATION 325 ITR 197 (K ER) (V) JHALANI & CO. V. ACIT 77 ITD 44 (DEL.) 4. SHRI T.N. BETGERI, THE LEARNED JOINT COMMISSIONE R OF INCOME TAX, APPEARED FOR THE REVENUE AND ARGUED THE CASE. - - I.T.A. NO. 500/MDS/14 3 5. THE ISSUE IS THAT THE DISPUTED AMOUNT IN FACT RE PRESENTED A DEBT. THIS AMOUNT HAS NOT BEEN OFFERED AS INCOME IN THE EARLIER ASSESSMENT YEARS. THE ASSESSEE HAS NOT PRO DUCED ANY USEFUL DETAILS ON THIS AMOUNT EITHER BEFORE THE ASS ESSING OFFICER OR BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS). IN THE ABSENCE OF SUCH DETAILS, THE COMMISSIONER OF INCOME TAX (APPEALS) FOUND THAT IT WAS NOT POSSIBLE TO DECIDE THE NATURE OF THE AMOUNT CLAIMED BY THE ASSESSEE AS DEDUCTION. 6. ON GOING THROUGH THE DETAILS, WE AGREE WITH THE VIEW TAKEN BY THE COMMISSIONER OF INCOME TAX (APPEALS) A ND FIND THAT THERE IS NO MERIT IN THE APPEAL FILED BY THE A SSESSEE. 7. IN RESULT, THIS APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON MONDAY, THE 12 TH OF MAY, 2014 AT CHENNAI. SD/- SD/- (S.S. GODARA) (DR. O.K. NARAYANAN) ( . . !') ( . . . ) # '$ /JUDICIAL MEMBER /VICE-PRESIDENT /CHENNAI, 4' /DATED, THE 12 TH MAY, 2014. KRI. - - I.T.A. NO. 500/MDS/14 4 '5 . ,#067 87'0 /COPY TO: 1. )* /APPELLANT 2. ,-)* /RESPONDENT 3. / 90 () /CIT(A)(C)-II, CHENNAI 4. / 90 /CIT, CENTRAL-III, CHENNAI 5. 7: ,#0# /DR 6. & ; /GF.