RANDOX LABORATORIES LTD., MUMBAI V. D.D.I.T. (I.T.) RG.2(1), MUMBAI

ITA 8384/MUM/2011

• Counselvise Citation: 838419914 RSA 2011
• Duration Of Justice: 1 year(s) 9 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 11-03-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 09-12-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Bad and doubtful debts

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL L BENCH, MUMBAI BEFORE S/SHRI B.R.MITTAL,(JM) AND D. KARUNAKARA RAO, (AM) . . , . , ./I.T.A. NO.8383 AND 8384/MUM/2011 ( / ASSESSMENT YEARS:2007-08 AND 2008-09) RANDOX LABORATORIES LIMITED - INDIA 3 RD FLOOR, GODREJ COLISEUM, SOMAIYA HOSPITAL ROAD, OFF EASTERN EXPRESS HIGHWAY, SION (E), MUMBAI-400022 / VS. DEPUTY DIRECTOR OF IN COME TAX (INTERNATIONAL TAXATION) RANGE 2(1), 120, SCINDIA HOUSE, BALLARD ESTATE, N M ROAD, MUMBAI-400038 ( # / APPELLANT) .. ( $# / RESPONDENT) ./ ./PAN/GIR NO. : AACCR1301G # / APPELLANT BY : SHRI N.R.AGARWAL $# ( /RESPONDENT : MS. NEERAJA PRADHAN ( + / DATE OF HEARING : 3.9.2013 ( + /DATE OF PRONOUNCEMENT : 11.9.2013 / O R D E R PER B.R.MITTAL, JM: THESE APPEALS ARE FILED BY ASSESSEE FOR ASSESSMENTS YEARS 2007-08 AND 2008-09 AGAINST A COMMON ORDER OF LD. CIT(A) DATED 22.9.201 1. 2. AT THE TIME OF HEARING OF THESE APPEALS, LD. AR SUBMITTED THAT THE APPEAL FOR ASSESSMENT YEAR 2007-08 BEING ITA NO.8383/MUM/2011 IS NOT PRESSED FOR AND THE SAME BE ALLOWED TO BE WITHDRAWN. 3. LD. DR HAS NO OBJECTION TO ACCEPT ABOVE SUBMI SSION OF LD. AR. 4. IN VIEW OF ABOVE SUBMISSIONS OF LD. REPRESENTAT IVES OF BOTH THE PARTIES, GROUNDS OF APPEAL TAKEN BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2007-08 ARE REJECTED AS NOT PRESSED FOR. I.T.A. NO.8383 AND 8384/MUM/2011 2 5. IN RESPECT OF APPEAL FOR ASSESSMENT YEAR 2008-09 , THE ASSESSEE HAS DISPUTED THE ORDER OF LD. CIT(A) ON FOLLOWING GROUNDS : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) : GROUND 1- DEDUCTION OF EV REPORTABLES OF RS.3,76,0 7,513 EARLIER TAXED AS INCOME IN AY 2007-08 1. ERRED IN FAILING TO ADJUDICATE UPON THE ALLOWABILIT Y OF DEDUCTION OF THE EV REPORTABLE (CONSIDERED AS INCOME OF THE APPELLANT IN AY 2007-08 AS BAD DEBTS IN AY 2008-09, AS HELD TO BE IDEAL COURSE BY THE AO IN HIS ASSESSMENT ORDER FOR AY 2007-08. GROUND 2- DEDUCTION OF AMOUNT OF RS.10,72,432/- CRE DITED IN BOOKS OF THE APPELLANT FOR INTERNATIONAL ACCOUNTING SERVICE S EARLIER TAXES AS INCOME IN AY-2007-08 2. ERRED IN NOT ALLOWING DEDUCTION OF EXCESS AMOUNTS C REDITED IN THE BOOK OF APPELLANT IN AY 2008-09 6. AT THE TIME OF HEARING, LD. AR SUBMITTED THAT ABOVE AMOUNTS HAVE BEEN ADDED TO THE INCOME OF ASSESSEE IN THE ASSESSMENT YEAR 2 007-08 AND CONSEQUENTLY, LD. CIT(A) HAS GIVEN CONSEQUENTIAL RELIEF TO THE ASSESSEE IN RESPECT OF ABOVE AMOUNTS IN THE ASSESSMENT YEAR 2008-09. LD. AR SUBMITTED THAT AS SESSEE HAS ACCEPTED THE ORDER OF LD. CIT(A) FOR ASSESSMENT YEAR 2007-08 AND CONSEQUE NTLY HAS NO GRIEVANCE AGAINST THE ORDER OF LD. CIT(A), AS LD. CIT(A) HAS DIRECTED AO TO DEDUCT THE SAID AMOUNT FROM THE INCOME OF ASSESSEE FOR ASSESSMENT YEAR 2008-09, WHI CH WAS OFFERED BY ASSESSEE TO TAX. HE SUBMITTED THAT AO HAS NOT GIVEN THE EFFECT TO T HE ORDER OF LD. CIT(A) AND THEREFORE, THE DIRECTION IS NOW SOUGHT FROM THE TRIBUNAL THAT THE AO SHOULD GIVE EFFECT TO THE ORDER OF LD. CIT(A) OF THE IMPUGNED ORDER DATED 22. 9.2011. 7. LD. DR HAS NOT DISPUTED THE ABOVE CONTENTI ON OF THE LD. AR. 8. WE HAVE CONSIDERED THE ORDER OF LD. CIT(A). WE OBSERVE THAT THE SAME VERY AMOUNTS HAVE BEEN CONFIRMED BY LD. CIT(A) TO BE AD DED IN ASSESSMENT YEAR 2007-08 AND CONSEQUENTLY, LD. CIT(A) VIDE PARA 4.1 HAS STA TED THAT IF THE CONSEQUENTIAL RELIEF IS NOT ALLOWED TO THE ASSESSEE IN AY 2008-09, IT WOU LD BE DOUBLE TAXATION AND THEREFORE HAS DIRECTED AO TO VERIFY FROM THE RECORD AND AFTER CONDUCTING NECESSARY INQUIRY FROM THE ASSESSEE AND GIVING OPPORTUNITY OF BEING HEARD TO ENSURE THAT DEDUCTION CLAIMED IN ASSESSMENT YEAR 2007-08 BY WAY OF REVISED RETUR N ARE NOT CLAIMED/ DISALLOWED IN ASSESSMENT YEAR 2008-09 AND IF IT IS FOUND TO BE SO , THE SAME BE DEDUCTED FROM THE I.T.A. NO.8383 AND 8384/MUM/2011 3 INCOME OFFERED FOR AY 2008-09. LD. CIT(A) HAS ALL OWED THE APPEAL OF ASSESSEE FOR AY 2008-09 FOR STATISTICAL PURPOSES. THEREFORE, WE AC CEPT THE CONTENTION OF LD. AR THAT THE SAID GROUNDS TAKEN BY ASSESSEE ARE TO BE REJECT ED AS THE LD. CIT(A) HAS ALLOWED RELIEF TO THE ASSESSEE SUBJECT TO VERIFICATION BY AO. AS MENTIONED HEREINABOVE, WE DIRECT THE AO TO PASS CONSEQUENTIAL ORDER EXPEDITIO USLY AND PREFERABLY WITHIN A PERIOD OF THREE MONTHS, KEEPING IN VIEW THAT LD. AR SUBMITTED THAT AO HAS NOT GIVEN EFFECT TO THE ORDER OF LD. CIT(A) WHICH WAS PASSED ABOUT TWO YEAR S BACK TILL DATE. SUBJECT TO ABOVE OBSERVATIONS, THE GROUNDS OF APPEAL TAKEN BY ASSESS EE FOR ASSESSMENT YEAR 2008-09 ARE REJECTED. 9. IN VIEW OF ABOVE, THE APPEAL FOR ASSESSMENT YEA R 2007-08 IS DISMISSED AS WITHDRAWN AND WHEREAS, THE APPEAL FOR ASSESSMENT YE AR 2008-09 IS DISMISSED SUBJECT TO OBSERVATIONS MADE HEREINABOVE, THAT AO WILL GIVE EFFECT TO THE ORDER OF LD. CIT(A) WITHIN A PERIOD OF THREE MONTHS FROM THE DATE OF RE CEIPT OF THIS ORDER. 10. IN THE RESULT, APPEALS OF THE ASSESSEE ARE DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11TH SEPTEM BER, 2013 ( / 0 11TH SEPTEMBER, 2013 ( SD SD ( . / D. KARUNAKARA RAO) ( . . /B.R.MITTAL) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; 0 DATED 11/ 09/2013 . . ./ SRL , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. # / THE APPELLANT 2. $# / THE RESPONDENT. 3. 4 ( ) / THE CIT(A)- CONCERNED 4. 4 / CIT CONCERNED 5. 5 $7 , + 7 , / DR, ITAT, MUMBAI CONCERNED 6. / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT. REGISTRAR) + 7 , /ITAT, MUMBAI