The DCIT, Circle-5, Ahmedabad V. Nirma Consumer Care Ltd., Ahmedabad

ITA 756/AHD/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 76831 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 11-06-2014
• Assessment Year: 2004-2005
• Appeal Filed On: 09-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P BATHEJA
• Assessee Lawyers: H C SHAH
• Keywords: Bad and doubtful debts

Judgement Text

, , , , , , , , IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A BENCH, AHMEDABAD , !' # $ $ $ $ %, # BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER $./ I.T.A. NO.756/AHD/2011 ( ( )( ( )( ( )( ( )( / / / / ASSESSMENT YEAR : 2004-05) DCIT CIRCLE-5 AHMEDABAD / VS. NIRMA CONSUMER CARE LTD. NIRMA HOUSE ASHRAM ROAD AHMEDABAD #* !' $./+, $./ PAN/GIR NO. : AAACN 5355 N ( *- / // / APPELLANT ) .. ( ./*- / RESPONDENT ) *- 0 ! / APPELLANT BY : SHRI O.P. BATHEJA, SR.DR ./*- 1 0 ! / RESPONDENT BY : SHRI H.C.SHAH, AR 2 1 ' / / / / DATE OF HEARING : 11/06/2014 34) 1 ' / DATE OF PRONOUNCEMENT : 13/06/2014 !5 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-XI, AHMEDABA D (CIT(A) IN SHORT) DATED 10/01/2011 PERTAINING TO ASSESSMENT Y EAR (AY) 2004-05. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APP EAL:- 1. THE LD.COMMISSIONER OF INCOME TAX (A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENALTY OF ` 30,10,000/- LEVIED U/S.271(1)(C) MADE IN RESPECT OF DISALLOWANCE OF RS.1,00,00,000/- BEING AMOUNT PAID TO NIRMA EDUCATION & RESEARCH FOUNDATION. ITA NO.756/AHD/ 2011 DCIT VS. NIRMA CONSUMER CARE LTD. ASST.YEAR 2004-05 - 2 - 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (A) OUGHT TO HAVE UPHELD THE ORDER OF TH E ASSESSING OFFICER. 3. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD.C OMMISSIONER OF INCOME TAX (A) MAY BE SET-ASIDE AND THAT OF THE ASS ESSING OFFICER BE RESTORED. 2. BRIEFLY STATED FACTS ARE THAT THE CASE OF THE AS SESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S.143( 3) OF THE INCOME TAX ACT,1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VIDE ORDER DATED 15/12/2006, THEREBY THE ASSESSING OFFICER (AO IN SHORT) MADE DISALLOWANCE OF ADVERTISEMENT EXPENSES AMOUNTING TO RS.1,00,00,000/- & DISALLOWANCE OF BAD DEBTS AMOUNTING TO RS.2,23,63,4 30/- AND ALSO ISSUED NOTICE U/S.274 R.W.S. 271(1)(C) OF THE ACT. SUBSEQ UENTLY, THE AO PASSED A PENALTY ORDER U/S.271(1)(C) OF THE ACT DATED 12/03/ 2010 IMPOSING THE PENALTY OF RS.1,16,11,000/- AS AGAINST MAXIMUM PEN ALTY LEVIABLE OF RS.3,48,31,143/-. AGAINST THIS ORDER, ASSESSEE FI LED AN APPEAL BEFORE THE LD.CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, DELETED THE PENALTY ON THE BASIS THAT THE HONBLE TRIBUNAL (ITAT A BENCH AHMEDABAD) IN ITA NO.3927/AHD/2008 & OTHERS FOR AY 2004-05, DATED 30/07/2010 HAS DECIDED THE APPEAL IN FAVOUR OF THE ASSESSEE. NOW, THE REVENUE IS IN APPEAL BEFORE US. 3. THE LD.SR.DR SUPPORTED THE ORDER OF THE PENALTY. ON THE CONTRARY, LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ADDI TION MADE ON THE BASIS OF THE DISALLOWANCES OF BAD DEBTS AND ADVERTISEMENT EXPENSES HAVE BEEN DELETED BY THE HONBLE TRIBUNAL IN ITA NO.3927/AHD/ 2008(SUPRA). ITA NO.756/AHD/ 2011 DCIT VS. NIRMA CONSUMER CARE LTD. ASST.YEAR 2004-05 - 3 - 4. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AS WELL AS THE DECISION OF THE HONBLE COORDINATE B ENCH PASSED IN ITA NO.3927/AHD/2008(SUPRA). 4.1. IN RESPECT OF THE DISALLOWANCE OF BAD DEBTS, T HE HONBLE TRIBUNAL IN ITA NO.3927/AHD/2008 FOR AY 2004-05 ORDER DATED 30/07/2010 VIDE PARAGRAPH NOS.14 TO 16 HAS DECIDED THIS ISSUE IN FA VOUR OF ASSESSEE AND IN RESPECT OF THE DISALLOWANCE OF ADVERTISEMENT EXP ENSES ALSO, THE HONBLE TRIBUNAL IN ITA NO.3927/AHD/2008(SUPRA) VID E PARAGRAPH NO.9 HAS DECIDED THIS ISSUE IN FAVOUR OF ASSESSEE, THERE BY THE ADDITION MADE BY THE AO HAS BEEN DELETED. 4.2. SINCE BOTH THE ADDITIONS, I.E. IN RESPECT OF B AD DEBTS AND ADVERTISEMENT EXPENSES HAVE BEEN DELETED BY THE COO RDINATE BENCH OF THIS TRIBUNAL IN ITA NO.3927/AHD/2008(SUPRA), WE AR E OF THE CONSIDERED VIEW THAT PENALTY IMPOSED THEREON DOES NOT SURVIVE. ACCORDINGLY, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD.CIT(A ), SAME IS HEREBY UPHELD. THUS, GROUND OF REVENUES APPEAL IS REJECT ED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN COURT ON THE DATE MENTIONED HER EINABOVE AT CAPTION PAGE SD/- SD/- ( ) ( %) !' # # ( ANIL CHATURVEDI ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 13/ 06 /2014 8 .., .../ T.C. NAIR, SR. PS ITA NO.756/AHD/ 2011 DCIT VS. NIRMA CONSUMER CARE LTD. ASST.YEAR 2004-05 - 4 - !5 1 .9 :!9) !5 1 .9 :!9) !5 1 .9 :!9) !5 1 .9 :!9)/ COPY OF THE ORDER FORWARDED TO : 1. *- / THE APPELLANT 2. ./*- / THE RESPONDENT. 3. $$ ; / CONCERNED CIT 4. ;() / THE CIT(A)-XI, AHMEDABAD 5. 9%< . , , / DR, ITAT, AHMEDABAD 6. <=( >2 / GUARD FILE. !5 !5 !5 !5 / BY ORDER, /9 . //TRUE COPY// ? ?? ?/ // / $+ $+ $+ $+ ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 11.6.14 (DICTATION-PAD 5-PA GES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 11.6.14 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 5. DATE ON WHICH FAIR ORDER PLACED BEFORE OTHER MEMBER 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.13.6.14 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 13.6.14 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER