ACIT, Chandigarh V. Ms. Kamlesh Dhingra, Chandigarh

ITA 626/CHANDI/2015

• Counselvise Citation: 62621514 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. 626/CHD/2015 ASSESSMENT YEAR: 2011-12 THE ACIT, VS SHRI KAMLESH DHINGRA, CIRCLE-4(1), WHOLESALERS, CHANDIGARH. M/S R.K. SALES CORP., HOUSE NO. 2154, SECTOR 35-C, CHANDIGARH. PAN: ACPPD8329N (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)-2, CHANDIGARH DATED 17.03.2015 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 AT THE PREMISES OF ASSESSEE IN WHICH CERTAIN DISCREPANCIES WERE NOTICED AND IN ORDER TO COVER-UP THE SAME, ASSESSEE SURRENDERED AN AMOUNT OF RS. 1 CRORE AS ADDITIONAL INCOME. THE ASSESSING OFFICER COMPUTED THE TOTAL INCOME AT RS. 1,09,95,542/-. 2 3. THE ASSESSEE CHALLENGED THE ADDITION OF RS. 21,50,000/- AS BAD DEBT. THE LD. CIT(APPEALS), FOLLOWING THE DECISION OF HON'BLE SUPREME COURT IN THE CASE OF TRF LTD. 323 ITR 397 DIRECTED THE ASSESSING OFFICER TO VERIFY AS TO WHETHER THE IMPUGNED AMOUNT S WHICH HAVE BEEN WRITTEN OFF AS BAD DEBTS WERE DECLA RED AS RECEIPTS IN EARLIER YEARS AND HAD ACTUALLY BEEN WRITTEN OFF IN THE BOOKS OF ACCOUNT DURING THE YEAR UNDER CONSIDERATION AND TO DECIDE ACCORDINGLY. THE ASSESSEE ALSO CHALLENGED THE ADDITION OF RS. 9,03,9 62/- ON ACCOUNT OF LOSS OF SALE OF OLD CHIPPED, CRACKED AND BROKEN PLASTIC GOODS ETC. THE ASSESSING OFFICER RE JECTED THE CLAIM OF ASSESSEE ON THE GROUND THAT THIS CLAIM WAS MADE TO AVOID PAYMENT OF TAX ON SURRENDERED AMOUNT. THE LD. CIT(APPEALS), ON THIS ISSUE RESTRICTED THE ADDITION TO RS. 8,13,026/- AND ALLOWED THE RELIEF T O THE ASSESSEE IN A SUM OF RS. 90,336/-. 4. THE REVENUE IN THE DEPARTMENTAL APPEAL HAS CHALLENGED THE ISSUE OF RS. 21,50,000/- FOR BAD DEB TS AND LOSS ALLOWED IN A SUM OF RS. 90,336/-. 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, 3 DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT Y EAR, 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, SINCE THE DEPARTMENTAL APPEAL IS FILED AGAINST THE INSTRUCTIONS OF THE BOA RD AS REFERRED TO ABOVE, THEREFORE, DEPARTMENTAL APPEAL I S LIABLE TO BE DISMISSED. 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