Sh. Ramesh Arora, New Delhi V. Addl. CIT, New Delhi

ITA 5014/DEL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58478 (ITAT-DELHI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 12-01-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 11-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUSHA KHURANA
• Keywords: Bad and doubtful debts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH `F : NEW DELHI) BEFORE SHRI U.B.S. BEDI, JUDICIAL MEMBER AND SHRI A.N. PAHUJA, ACCOUNTANT MEMBER ITA NO.5014/DEL./2011 (ASSESSMENT YEAR : 2007-08) SHRI RAMESH ARORA, VS. ADDL.CIT, RANGE 39, 11098-C, DORI WALAN, NEW DELHI. EAST PARK ROAD, KAROL BAGH, NEW DELHI-110 005. (PAN/GIR NO.ACZPA5106A) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI ASHOK KUMAR GUPTA, C.A. REVENUE BY : SMT. ANUSHA KHURANA, SR.DR ORDER PER U.B.S. BEDI, J.M. THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE CIT(A)-XXVIII, NEW DELHI DATED 02.09.2011, RELEVANT TO ASSESSMENT YEAR 2007-08, WHEREBY ASSESSEE HAS RAISED TWO EFFECTIVE GROUNDS WHICH ARE AS UNDER: 1. THE ACTION OF THE CIT(A) IN CONFIRMING THE ACTI ON OF THE ASSESSING OFFICER IN DISALLOWING RS.1,66,090/- BEING THE AMOUNT OF BA D DEBTS WRITTEN OFF IN THE CASE OF M/S IDEAL BOOK AGENCY IS ILLEGAL, ARBIT RARY, UNWARRANTED, UNCALLED FOR AND AGAINST THE FACTS AND THE CIRCUMST ANCES OF THE CASE. 2. THE ACTION OF THE CIT(A) IN CONFIRMING THE ACTIO N OF THE ASSESSING OFFICER IN DISALLOWING RS.1,73,128/- BEING THE AMOUNT OF BA D DEBTS WRITTEN OFF IN THE CASE OF M/S SHREE BALAJI BOOK AGENCY IS ILLEGAL , ARBITRARY, UNWARRANTED, UNCALLED FOR AND AGAINST THE FACTS AND THE CIRCUMSTANCES OF THE CASE. 2. AS REGARDS FIRST ISSUE, THE ACTION OF THE ASSESS ING OFFICER IN DISALLOWING OF RS.1,66,090/- BEING AMOUNT OF BAD DEBTS WRITTEN OFF IN THE CASE OF M/S IDEAL BOOK AGENCY WAS CHALLENGED BEFORE THE CIT(A). THIS AMOU NT WAS BEING CLAIMED FROM FINANCIAL YEAR 2003-04 AND WAS UNRECOVERABLE. HENC E, ASSESSEE WRITTEN IT OFF DURING THE I.T.A. NO.5014/DEL./2011 (A.Y. : 2007-08) 2 YEAR UNDER CONSIDERATION AND CLAIMED SUCH AMOUNT. THE CIT(A) DID NOT AGREE WITH THE ASSESSEE AND CONFIRMS SUCH DISALLOWANCE. 3. IN FURTHER APPEAL, ASSESSEE CHALLENGED THE ACTIO N OF THE CIT(A) AND WHILE RELYING UPON THE JUDGMENT OF THE HONBLE SUPREME COURT IN C IVIL APPEAL NO.5293 OF 2003 IN THE CASE OF TRF LTD. VS. CIT DATED 9.2.2010 HAS PLEADED THAT SINCE IT IS COVERED ISSUE, THEREFORE, ADDITION MADE BY THE ASSESSING OFFICER A ND CONFIRMED BY THE CIT(A) MAY BE DELETED. NO OBJECTION COULD BE RAISED BY THE LD.DR WITH RESPECT TO THIS FACTUAL ASPECT THAT THE ISSUE IS COVERED BY AFORESAID DECISION OF THE HONBLE SUPREME COURT. 4. HAVING HEARD BOTH THE SIDE AND CONSIDERING THE M ATERIAL ON RECORD AS WELL AS PRECEDENT RELIED UPON BY THE LD.COUNSEL FOR THE ASS ESSEE OF THE HONBLE APEX COURT, WE DIRECT TO DELETE THE IMPUGNED ADDITION WHILE ALLOWI NG THIS GROUND OF APPEAL OF THE ASSESSEE. 4 NEXT GROUND RELATES TO CONFIRMATION OF DISALLOWAN CE OF RS.1,73,128/- BEING THE AMOUNT OF BAD DEBTS WRITTEN OFF IN THE CASE OF M/S SHREE BALAJI BOOK AGENCY MADE BY THE ASSESSING OFFICER AND LD.COUNSEL FOR THE ASSESS EE WHILE RELYING UPON THE ABOVE SAID DECISION OF HONBLE APEX COURT HAS PLEADED FOR DELE TION OF THE IMPUGNED ADDITION AND TO THIS, LD.DR COULD NOT CONTROVERT THIS FACTUAL ASPEC T THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE HIGHEST COURT OF THE LAND. 5. AFTER HEARING BOTH THE SIDES AND CONSIDERING THE MATERIAL ON RECORD AS WELL AS PRECEDENT RELIED UPON BY THE LD.COUNSEL FOR THE ASS ESSEE OF APEX COURT IN THE CASE OF TRF LTD. VS. CIT (SUPRA), WE DIRECT TO DELETE THE I MPUGNED ADDITION AS MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE CIT(A). 6. AS A RESULT, THE APPEAL OF THE ASSESSEE IS ACC EPTED. ORDER PRONOUNCED IN OPEN COURT SOON AFTER THE CLOS URE OF THE HEARING ON 12.01.2012. SD/- SD/- (A.N. PAHUJA) ACCOUNTANT MEMBER (U.B.S. BEDI ) JUDICIAL MEMBER DATED : JANUARY 12, 2012 SKB I.T.A. NO.5014/DEL./2011 (A.Y. : 2007-08) 3 COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A)-XXVIII, NEW DELHI. 5. CIT(ITAT) DEPUTY REGISTRAR, ITAT