ITO, Chandigarh V. M/s Vogue Commercial Company Limited, Chandigarh

ITA 740/CHANDI/2015

• Counselvise Citation: 74021514 RSA 2015
• Duration Of Justice: 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 14-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: TEJ MOHAN SINGH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. ANNAPURNA MEHROTRA, ACCOUNTANT MEMBER ITA NO. 740/CHD/2015 ASSESSMENT YEAR: 2012-13 THE ITO, VS M/S VOGUE COMMERCIAL CO.LTD., WARD 4(3), SCO 144-145, SECTOR 34-A, CHANDIGARH. CHANDIGARH. PAN: AAACV7077P (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH RESPONDENT BY : SHRI TEJ MOHAN SINGH DATE OF HEARING : 27.10.2015 DATE OF PRONOUNCEMENT : 29.10.2015 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDE R OF LD. CIT(APPEALS)-II CHANDIGARH DATED 04.06.2015 FOR ASSESSMENT YEAR 2012-13. 2. THE REVENUE HAS FILED THIS APPEAL CHALLENGING TH E ORDER OF THE LD. CIT(APPEALS) ON THE ISSUE OF BAD D EBT WRITTEN OFF OF RS. 14,68,324/-. THE ASSESSING OFFI CER DISALLOWED THE CLAIM OF BAD DEBT ON THE REASON THAT ASSESSEE HAD NOT FURNISHED ANY CONVINCING EVIDENCE THAT DEBT WAS NOT RECOVERABLE AND HAD NOT MADE ANY SERIO US EFFORT FOR RECOVERY OF THE SAME. THE LD. CIT(APPEA LS) FOUND THAT ADDITION IS WHOLLY UNJUSTIFIED IN VIEW OF THE JUDGEMENT 2 OF HON'BLE SUPREME COURT IN THE CASE OF M/S T.R.F. LTD. 323 ITR 397 BECAUSE IT IS NO MORE NECESSARY FOR THE ASSESSEE TO ESTABLISH THAT DEBT, IN FACT HAS BECOME IRRECOVERABLE. IT IS ENOUGH IF THE DEBT IS WRITTEN OFF AS IRRECOVERABLE IN THE BOOKS OF ACCOUNT OF THE ASSESS EE AS PER AMENDMENT IN THE ACT W.E.F. 01.04.1989. THE LD. CIT(APPEALS), THEREFORE, DIRECTED THE ASSESSING OFF ICER TO VERIFY AS TO WHETHER THE IMPUGNED AMOUNT HAS BEEN W RITTEN OFF AS BAD DEBT IN THE BOOKS OF ACCOUNT. 3. ON CONSIDERATION OF THE ABOVE FACTS AND RIVAL SUBMISSIONS OF THE PARTIES, WE ARE OF THE VIEW THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY JUDGEMENT OF T HE HON'BLE SUPREME COURT IN THE CASE OF M/S T.R.F. LTD . (SUPRA). THEREFORE, THERE IS NO ILLEGALITY IN THE ORDER OF THE LD. CIT(APPEALS). 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA MEHROTRA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 29 TH OCT., 2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT/CHD