ACIT, Chandigarh V. Sh. Rakesh Kumar, Chandigarh

ITA 625/CHANDI/2015

• Counselvise Citation: 62521514 RSA 2015
• Duration Of Justice: 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Next Hearing Date: 16-12-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 10-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJINDER KAUR
• Keywords: Bad and doubtful debts; Tax effect
• Section: 133A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.RANO JAIN, ACCOUNTANT MEMBER ITA NO. 625/CHD/2015 ASSESSMENT YEAR: 2011-12 THE ACIT, VS SHRI RAKESH KUMAR, CIRCLE-4(1), WHOLESALERS, CHANDIGARH. M/S R.K. SALES CORP., HOUSE NO. 2154, SECTOR 35-C, CHANDIGARH. PAN: ABGPK9611A (APPELLANT) (RESPONDENT) DEPARTMENT BY : SMT. RAJINDER KAUR ASSESSEE BY : NONE DATE OF HEARING : 16.12.2015 DATE OF PRONOUNCEMENT : 16.12.2015 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS)-II, CHANDIGARH DATED 30.03.2015 FOR ASSESSMENT YEAR 2011-12. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT SURVEY UN DER SECTION 133A OF THE ACT WAS CARRIED OUT ON 19.10.20 10 IN WHICH CERTAIN DISCREPANCIES WERE NOTICED. THERE FORE, THE ASSESSEE SURRENDERED RS. 1 CRORE AS ADDITIONAL INCOME. THE ASSESSING OFFICER COMPUTED THE TOTAL INCOME AT RS. 1,10,26,637/-. 2 3. THE ASSESSEE, AT THE APPELLATE STAGE CHALLENGED THE ORDER OF THE ASSESSING OFFICER IN DISALLOWING BAD D EBT OF RS. 22,46,105/-. THE LD. CIT(APPEALS), FOLLOWING T HE JUDGEMENT OF HON'BLE SUPREME COURT IN THE CASE OF T RF LTD. 323 ITR 397 DIRECTED THE ASSESSING OFFICER TO VERIFY WHETHER THE IMPUGNED AMOUNTS WHICH HAVE BEEN WRITTE N OFF AS BAD DEBTS WERE DECLARED AS RECEIPTS IN EARLI ER YEAR AND HAD ACTUALLY BEEN WRITTEN OFF IN THE BOOKS OF ACCOUNT DURING THE YEAR UNDER CONSIDERATION AND TO PASS ORDER ACCORDINGLY. THE ASSESSEE ALSO CLAIMED AN AM OUNT OF RS. 9,21,440/- ON ACCOUNT OF LOSS OF SALE OF CHI PPED, CRACKED AND BROKEN PLASTIC GOODS ETC. THE ASSESSIN G OFFICER REJECTED THE CLAIM OF TAX ON SURRENDERED AM OUNT. THE LD. CIT(APPEALS), ON THIS ISSUE RESTRICTED THE ADDITION TO RS. 8,29,294/- AND ALLOWED THE RELIEF T O THE ASSESSEE IN A SUM OF RS. 92,144/-. 4. THE REVENUE IS IN APPEAL AGAINST THESE FINDINGS OF LD. CIT(APPEALS) ON BOTH THE ABOVE ISSUES OF RS. 22,46,105/- AND RS. 92,144/-. 5. ACCORDING TO CIRCULAR NO. 21/2015 DATED 10.12.2015, THE CBDT IN SUPERCESSION OF EARLIER INSTRUCTIONS HAS DIRECTED THAT DEPARTMENTS APPEALS BEFORE ITAT SHALL NOT BE FILED IN CASES WHERE THE T AX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS. 10 LACS. THE TAX WILL NOT INCLUDE ANY INTEREST THEREON. IT IS FURTHER CLARIFIED THAT IF IN THE CASE OF AN ASSESSE E, DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT Y EAR, 3 APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT Y EAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF DISP UTED ISSUES EXCEEDS THE MONETARY LIMIT SO SPECIFIED. TH IS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING A PPEALS AND APPEALS TO BE FILED HENCEFORTH BEFORE THE TRIBU NAL. THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT M AY BE WITHDRAWN/NOT PRESSED. 6. ADMITTEDLY, IN THE DEPARTMENTAL APPEAL, THE TAX EFFECT IS LESS THAN RS. 10 LACS, THEREFORE, DEPARTM ENTAL APPEAL IS NOT MAINTAINABLE. THE LD. CIT(APPEALS) DECIDED THE ISSUE IN DEPARTMENTAL APPEAL ON FACTS A ND THE CASE OF THE REVENUE WOULD NOT FALL IN THE EXCEP TIONS PROVIDED IN THE ABOVE CIRCULAR. 7. IN VIEW OF THE ABOVE, THE DEPARTMENTAL APPEAL IS NOT MAINTAINABLE AND IS ACCORDINGLY, DISMISSED AS F ILED AGAINST THE INSTRUCTIONS OF THE BOARD. 8. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (RANO JAIN) (BHAVN ESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 16 TH DECEMBER, 2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT/CHD