ITO, Bangalore V. M/s Thakral Computers Pvt. Ltd., Bangalore

ITA 713/BANG/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7473 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 15-06-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 01-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N SUKUMAR
• Assessee Lawyers: C J BRITO

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER A ND SHRI LALIET KUMAR, JUDICIAL MEMBER ITA NO. 713 /BANG/201 6 ASSESSMENT YEAR : 20 0 5 - 0 6 THE INCOME TAX OFFICER, WARD 7(1)(1), BANGALORE. VS. M/S. THAKRAL COMPUTERS PVT. LTD., 121, 8 TH FLOOR, THE ESTATES, DICKENSON ROAD, BANGALORE 560 042. PAN: AAACT 1899F APPELLANT RESPONDENT ASSESSEE BY : SHRI C.J. BRITO, CA REVENUE BY : SHRI N. SUKUMAR, ADDL. CIT (DR) DATE OF HEARING : 1 2 . 09 .201 7 DATE OF PRONOUNCEMENT : 13 .10 .2017 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE REVENUE WHICH IS DIRECT ED AGAINST THE ORDER OF LD. CIT(A)-14, MUMBAI DATED 27.01.2016 FOR ASSESSMENT Y EAR 2005-06. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER. 1. THE ORDER OF THE LEARNED CLT(A) IS OPPOSED TO LA W AND FACTS OF THE CASE. 2. THE CLT(APPEALS) ERRED IN IGNORING THE FACT THAT THE CLAIM FOR WRITING OFF OF BAD DEBT IN THE ASSESSEE'S CASE IS P OOR FINANCIAL CONDITIONS OF THE DEBIT. NONE OF THE REASONS ARE SU BSTANTIATED BY THE ASSESSEE IN THE FORM OF DOCUMENTATION FROM T HE DEBTOR THAT THE FINANCIAL CONDITION IS POOR OR ANY OTHER E VIDENCE TO SUBSTANTIATE THAT THE SERVICES WERE NOT UTILIZED. 3. THE CLT(APPEALS) ERRED IN NOT CONSIDERING THAT T HERE IS NO MATERIAL SUPPORTIVE OF THE FACT THAT THE DEBIT IS N OT RECOVERABLE. 4. THE CLT(APPEALS) OUGHT TO HAVE CONSIDERED THAT F OR DECISION TO WRITE OFF A BAD DEBT BE BONAFIDE THERE MUST BE S OME MATERIAL TO SUPPORT THE DECISION THAT THE DEBT IS NOT RECOVE RABLE. ITA NO. 713/BANG/2016 PAGE 2 OF 3 5. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE CLT(A) IN SO FAR AS IT RELATES TO THE ABOVE GROUNDS MAY BE REVERSED AND TH AT OF THE ASSESSING OFFICER MAY BE RESTORED. 6. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND AND/OR DELETE ANY OF THE GROUNDSMENTIONED ABOVE. 3. THE LD. DR OF REVENUE SUPPORTED THE ASSESSMENT O RDER WHEREAS THE LD. AR OF ASSESSEE SUPPORTED THE ORDER OF CIT(A). HE ALSO SUB MITTED THAT THIS ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE J UDGMENT OF HONBLE APEX COURT RENDERED IN THE CASE OF T.R.F. LTD. VS. CIT A S REPORTED IN 323 ITR 397. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FI ND THAT AS PER THE ASSESSMENT ORDER, THIS IS NOT THE OBJECTION OF THE AO THAT THE DEBTS WERE NOT WRITTEN OFF IN THE BOOKS OF ACCOUNTS. THE OBJECTION OF THE AO IS THAT THERE IS NO MATERIAL SUPPORTING THE FACT THAT THE DEBT IS NOT RECOVERABL E. AFTER THE AMENDMENT OF SECTION 36(1)(III) W.E.F. 01.04.1989, THIS IS NOT R EQUIREMENT OF LAW THAT THE ASSESSEE HAS TO ESTABLISH THAT THE DEBT HAS BECOME BAD AND THIS ONLY IS SUFFICIENT THAT THE DEBTS WERE WRITTEN OFF BY THE A SSESSEE IN THE BOOKS OF ACCOUNTS. THE JUDGMENT OF HONBLE APEX COURT IN TH E CASE OF T.R.F. LTD. VS. CIT (SUPRA) IS ALSO ON THE SAME LINE. THE LD. CIT( A) HAS FOLLOWED THIS JUDGMENT OF HONBLE APEX COURT. HENCE WE FIND NO REASON TO INTERFERE IN THE ORDER OF CIT(A). 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. (LALIET KUMAR) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 13 TH OCTOBER, 2017. /MS/ ITA NO. 713/BANG/2016 PAGE 3 OF 3 COPY TO: 1. APP ELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.