EAGLE FREIGHT FORWARDERS P.LTD, MUMBAI V. ITO 1(1)(3), MUMBAI

ITA 743/MUM/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 3676 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Next Hearing Date: 19-05-2016
• Assessment Year: 2004-2005
• Appeal Filed On: 29-01-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KAILASH GAIKWAD
• Keywords: Additional evidence; Bad and doubtful debts

Judgement Text

, INCOME-TAX APPELLATE TRIBUNAL -EBENCH MUMBAI , . . , BEFORE S/SHRI RAJENDRA,ACCOUNTANT MEMBER AND C. N. PRASAD,JUDICIAL MEMBER ./ITA/743/MUM/2013, /ASSESSMENT YEARS: 2004-05 EAGLE FREIGHT FORWARDERS PVT. LTD. CASSINATH BUILDING 17, A.K. NAYAK MARG OPP. NEW EXCELSIOR CINEMA MUMBAI-400 001. PAN:AAACE 1636 P VS. INCOME TAX OFFICER-1(1) AAYAKAR BHAVAN, MK ROAD MUMBAI-400 020. ( /APPELLANT ) ( / RESPONDENT) REVENUE BY: SHRI KAILASH GAIKWAD ASSESSEE BY: SHRI SURENDRA NIJSURE / DATE OF HEARING: 12.07.2016 / DATE OF PRONOUNCEMENT: 12.08.2016 ,1961 254(1) ORDER U/S.254(1)OF THE INCOME-TAX ACT,1961(ACT) PER RAJENDRA, AM - CHALLENGING THE ORDER DATED 30.11.2012 OF CIT(A)-4, MUMBAI THE ASSESSEE HAS FILED THE PRESENT APPEAL.ASSESSEE-COMPANY,ENGAGED I N THE BUSINESS OF TRANSPORTATION OF GOODS AND CARGO,FILED ITS RETURN OF INCOME 1.11.2004,DECLARING TOTAL INCOME AT RS.(-)44.61 LAKHS.THE ASSESSING OFF ICER(AO)COMPLETED THE ASSESSMENT,U/S.143 OF THE ACT,ON 29.12.2006 DETERMI NING ITS INCOME AT RS.NIL AFTER ADJUSTING THE LOSSES OF THE EARLIER AY.S. 2. SOLITARY GROUND OF APPEAL IS ABOUT CONFIRMING THE D ISALLOWANCE OF BAD DEBTS, AMOUNTING TO RS.78.10 LAKHS.DURING THE ASSESSMENT P ROCEEDINGS,THE AO FOUND THAT THE ASSESSEE HAD DEBITED UNDER THE HEAD ADMINI STRATIVE AND OTHER EXPENSES AN AMOUNT OF RS.78,10,838/-ON ACCOUNT OF BAD DEBTS WRITTEN OFF.HE ASKED THE ASSESSEE TO FURNISH THE YEAR IN WHICH THE INCOME WH ICH WAS CLAIMED TO BE BAD DEBTS WAS OFFERED TO TAX OR THE RECEIPT/SALE ETC.WA S CREDITED IN THE P&L ACCOUNT.VIDE ITS LETTER DTD.18.12.2006,THE ASSESSEE FILED ITS REPLY IN THAT REGARD.AS PER THE AO THE ASSESSEE DID NOT FURNISH T HE DETAILS AS TO WHEN THE 743/M/13 EAGLE FREIGHT FORWARDERS PVT. LTD. 2 INCOME,CLAIMED AS BAD DEBTS,WAS OFFERED FOR TAXATIO N.HE ADDED THE DISPUTED AMOUNT TO THE TOTAL INCOME OF THE ASSESSEE. 3. AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE IS IN APPEAL BEFORE THE FAA. BEFORE HIM,IT FILED CERTAIN ADDITIONAL EVIDENCES.HE CALLED FOR A REMAND REPORT FROM THE AO.AFTER CONSIDERING THE REMAND REPORT, TH E FAA HELD THAT THE ASSESSEE HAD NOT PRODUCED ANY EVIDENCE BEFORE THE A O, THAT IT HAD FAILED TO PROVE THAT BAD DEBTS CLAIMED BY IT WERE EVER CONSID ERED FOR COMPUTING THE INCOME OF THE ASSESSEE IN THE EARLIER YEARS, THAT T HE CONDITIONS OF SECTION 36 (2) OF THE ACT WERE NOT FULFILLED. HE DISMISSED THE APP EAL FILED BY THE ASSESSEE. 4. DURING THE COURSE OF HEARING BEFORE US, THE AUTHORI SED REPRESENTATIVE (AR) STATED THAT, THE ASSESSEE HAD PRODUCED ADDITIONAL E VIDENCE AS BEFORE THE FAA, THAT IT HAD FILED THE DETAILS OF INVOICES AND BILL AMOUNTS IN THE CASE OF NAVA SHEVA INTERNATIONAL CONTAINER TERMINAL LTD.(PG.5A O F THE PB), CONSOLIDATED MARINE SERVICES PVT. LTD. ALONG WITH THE LEDGERS AN D THE RECONCILLIATION STATEMENTS, THAT THE DOCUMENTS WERE NOT CONSIDERED BY EITHER OF THE AUTHORITIES.THE DEPARTMENTAL REPRESENTATIVE(DR) SUP PORTED THE ORDER OF THE FAA. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE AVAILABLE MATERIAL. WE FIND THAT THE ASSESSEE HAD FILED CERTAIN DOCUMENTS BEFORE THE FAA DURING THE APPELLATE PROCEEDINGS, THAT HE HAD CALLED FOR REMAN D REPORT FROM THE AO, THAT WHILE FORWARDING THE REPORT,THE AO DID NOT COMMENT UPON ANY OF THE EVIDENCES, HE DID NOT CONSIDER THE VARIOUS DOCUMENTS FORWARDED TO HIM BY THE FAA,THAT HE SIMPLY DECIDED THE ISSUE AGAINST THE ASSESSEE FOR I TS NON-APPEARANCE, THAT THE FAA ALSO DID NOT ADJUDICATE THE ISSUE ON MERITS. TH EREFORE,WE ARE OF THE OPINION THAT,IN THE INTEREST OF JUSTICE,THE MATTER SHOULD B E RESTORED BACK TO THE FILE OF THE AO FOR FRESH ADJUDICATION.THE ASSESSEE IS DIRECTED TO APPEAR BEFORE THE AO AND 743/M/13 EAGLE FREIGHT FORWARDERS PVT. LTD. 3 EXPLAIN THE EVIDENCES PRODUCED BY IT BEFORE THE FAA DURING THE APPELLATE PROCEEDINGS. EFFECTIVE GROUND OF APPEAL, FILED BY T HE ASSESSEE, IS DECIDED IN ITS FAVOUR,IN PART. AS A RESULT, APPEAL FILED BY THE ASSESSEE STANDS PA RTLY ALLOWED. . ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH AUGUST,2016. 12 , 2016 SD/- SD/- ( . . / C.N. PRASAD ) ( / RAJENDRA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 12.08.2016. JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR E BENCH, ITAT, MUMBAI / , , . . . 6. GUARD FILE/ !' //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.