ACIT, Alwar V. GILLETTE INDIA LIMITED, Alwar

ITA 59/JPR/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99611 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2003-2004
• Appeal Filed On: 27-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MEENA CIT DHK
• Keywords: Retrospective amendment; Bad and doubtful debts
• Section: 115JB

Judgement Text

ITA NO. 59-JP-14 ACIT CIRCLE-2. ALWAR VS. M/S GILLETE INDIA LTD. 1 VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH FOE FLAG ;KN O] YS[KK LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JM & SHRI VIKRAM SINGH YA DAV, AM VK;DJ VIHY LA-@ ITA NO. 59/JP/14 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR 2003-04 THE ACIT, CIRCLE-2, ALWAR CUKE VS. M/S GILLETE INDIA LTD. SPA 65A INDUSTRIAL AREA, BHIWADI DIST.ALWAR ````````````````````LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAACI 3924J VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL (C.A.) JKTLO DH VKSJ LS@ REVENUE BY : SHRI M.S. MEENA(CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 20/10/2015 ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 15/12/2015. VKNS'K@ ORDER PER SHRI VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A), ALWAR DATED 18.11.2013 WHEREIN THE REVENUE HAS TAKEN THE FOLLOWING TWO GROUNDS OF APPEAL: 1. THAT THE CIT(A) ALWAR HAS ERRED IN LAW AS WELL AS O N THE FACTS AND CIRCUMSTANCES OF THE CASE IN DELETING THE ADDITION OF RS. 14,39,552/- MADE BY THE AO ON A/C OF DAMAGE/SHORTAG E OF INVENTORY CLAIMED. 2. THE LD. CIT(A) ALWAR HAS ERRED IN LAW AS WELL AS ON THE FACTS AND CIRCUMSTANCES OF THE CASE IN ALLOWING THE CLAIM OF ACTUAL WRITTEN ITA NO. 59-JP-14 ACIT CIRCLE-2. ALWAR VS. M/S GILLETE INDIA LTD. 2 OFF OF BAD DEBTS OF RS. 3,02,29,057/- IN COMPUTING THE BOOK PROFIT U/S 115JB OF THE IT ACT. 2. REGARDING FIRST GROUND OF APPEAL, IT IS NOTED T HAT THE MATTER HAD CAME UP EARLIER BEFORE THE COORDINATE BENCH IN ITA NO.188/265/JP/07 DATED 09.08.2010 WHEREIN THE COORDINATE BENCH HAS S ET-ASIDE THE MATTER TO THE FILE OF THE AO WITH THE FOLLOWING OBSERVATIO NS: AS REGARD TO THE DISALLOWANCE OF RS.14,39,552/- IN RESPECT OF DAMAGE/SHORTAGE OF INVENTORY, THE LD. AR HAS FAIRLY ADMITTED THAT ITEM WISE DETAILS COULD NOT BE FURNISHED BEFORE THE LOWER AUTHORITIES BUT CONSIDERING THE FACT THAT AMOUNT IS MEAGER IN COMPARISON TO THE TOTAL VALUE OF THE INVENTORY AND THE SYSTEM OF ACCOUNTING FOLLOWING WHICH IS ACCEPTED BY THE AO, T HE DISALLOWANCE IS LIABLE TO BE DELETED. HOWEVER, THE AO WILL ASCERTAIN THAT THESE ITEMS ARE SHOWN AS WRITTEN OF F OR NOT AS IT IS NOT CLEAR FROM THE FACTS/DETAILS FILED. 2.1 DURING THE COURSE OF SET-ASIDE PROCEEDINGS, THE MA TTER WAS EXAMINED BY THE AO AS WELL AS BY THE LD.CIT(A). TH E LD. CIT(A) HAS STATED CLEARLY IN HIS ORDER THAT IN THE SET-ASIDE A SSESSMENT PROCEEDINGS, THE APPELLANT HAS FURNISHED DETAILS OF INVENTORY WR ITTEN OFF AND COPY OF THE SAME WAS ALSO FILED BEFORE HIM. IN LIGHT OF TH E CLEAR FINDINGS OF THE LD. CIT(A), WE SEE NO INFIRMITY IN THE ORDER OF T HE LD. CIT(A). THE GROUND OF APPEAL OF THE REVENUE IS THEREFORE DISMISSE D. ITA NO. 59-JP-14 ACIT CIRCLE-2. ALWAR VS. M/S GILLETE INDIA LTD. 3 3. REGARDING SECOND GROUND OF APPEAL, THE MATTER WAS A GAIN BEFORE THE COORDINATE BENCH WHICH VIDE ITS ORDER DATED 09 .08.2010 HAS SET-ASIDE THE MATTER TO THE FILE OF THE AO TO EXAMINE THE CLAIM OF ACTUAL RIGHT OFF BAD DEBTS ADVANCES OF RS, 3,02,29,057/- WITH THE FOLLOWING DIRECTIONS CONTAINED AT PARA 60 ,WHICH READS AS UND ER: AS REGARD PROVISION FOR BAD AND DOUBTFUL ADVANCE AT RS. 2,97,62,39/- THE LD. AR FAIRLY ADMITTED THAT IN VIE W OF THE RETROSPECTIVE AMENDMENT MADE IN (I) OF SECTION 115JB BY FINANCE ACT 2009 W.E.F. 01.04.2001 ANY PROVISION FOR DIMINUT ION IN THE VALUE OR ANY ASSET IS TO BE ADDED TO THE BOOK PROF IT. HOWEVER, THE LD. AR FURTHER CONTENDED THAT THE AMOUNT OF BAD DEBT AND ADVANCES ACTUALLY WRITTEN OFF AT RS. 3,02,29,057/- SHOULD BE DIRECTED TO BE ALLOWED. SINCE THERE IS AMENDMENT IN LAW WITH RETROSPECTIVE EFFECT. THE CLAIM OF THE LD. AR S TO THE REDUCTION OF ACTUAL WRITE OFF FROM THE BOOK PROFIT NEEDS TO BE EX AMINED BY TH4 AO. HENCE THIS ISSUE IS SET ASIDE TO THE AO WITH T HE DIRECTION TO DECIDE THE SAME S PER LAW. 3.1 AS PER THE LD. CIT(A), THE AO HAS NOT DISPUTED THAT BAD DEBTS OF RS. 2,02,29,057 HAVE ACTUALLY BEEN WRITTEN OFF BY TH E APPELLANT DURING THE YEAR UNDER CONSIDERATION. FURTHER IT IS ALSO NOTED THAT THE ASSESEE HAS SUBMITTED THE DETAILS OF WORKING OF ACTUALLY WRI TTEN OFF ALONGWITH REFERENCES TO THE RELEVANT SCHEDULE TO THE AUDITED B ALANCE SHEET, ITA NO. 59-JP-14 ACIT CIRCLE-2. ALWAR VS. M/S GILLETE INDIA LTD. 4 PROFIT AND LOSS ACCOUNT. IN THE LIGHT ABOVE WE SEE NO INFIRMITY IN THE ORDER OF THE LD. CIT(A) WHO HAS ALLOWED THE DEDUCTION O F RS. 3,02,29,057/- ON ACCOUNT OF BAD DEBTS ACTUALLY WRITTE N OFF WHILE COMPUTING THE FIGURE OF BOOK PROFIT U/S 115 JB OF THE IT ACT. HENCE THIS GROUND OF REVENUE IS DISMISSED. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 125/12/2015 VKJ-IH-RKSYKUH FOE FLAG ;KNO (R.P.TOLANI) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 15/12 /2015 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ACIT, CIRCLE-2, ALWAR 2. THE RESPONDENT- M/S GILLETE INDIA LTD. ALWAR 3. THE CIT(A), ALWAR 4. THE CIT-ALWAR 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO.59/JP/14) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR ITA NO. 59-JP-14 ACIT CIRCLE-2. ALWAR VS. M/S GILLETE INDIA LTD. 5