ITO, Ward - 12(2), Kolkata, Kolkata V. M/s. Endogram Leasing & Trading Co. Pvt. Ltd., Kolkata

ITA 848/KOL/2010

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 75035 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 9 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2014
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2004-2005
• Appeal Filed On: 29-04-2010
• Court: TRIBUNAL
• Assessee Lawyers: S M SURANA LD

Judgement Text

, C INCOME TAX APPELLATE TRIBUNAL, BENCH- C KOLKATA ( ) BEFORE . , ! SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER '#$ /AND 1 & ' , ! SHRI GEORGE MATHAN, JUDICIAL MEMBER $( / ITA NO. 848/KOL/2010 A.Y 2004-05 I.T.O WARD 12 (2), KOLKATA - #' - VERSUS - . M/S. ENDOGRAM LEASING & TRADING CO. PVT. LTD PAN: AAACE 6313P ( &* / APPELLANT ) ( +,&* / RESPONDENT ) &* .' / FOR THE APPELLANT SMT. SUCHETA CHATTOPADHYAY, LD.JCIT/SR.DR +,&* .' / FOR THE RESPONDENT: / SHRI S.M SURANA, ADVOCATE, LD.AR /'#0 1 2 /DATE OF HEARING : 31-01-2014 34 1 2 /DATE OF PRONOUNCEMENT:05/02/2014 5 / ORDER 1 &' , ! SHRI GEORGE MATHAN, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS), XII, KOLKATA IN APPEAL NO. 219/XII/12(2)/06-07 DATED 29-01-2010 FOR THE ASSESSMENT YEAR 2004-05 . 2. SMT. SUCHETA CHATTOPADHYAY, LEARNED JCIT/SR. DR REPRESENTED ON BEHALF OF THE REVENUE AND SHRI S.M. SURANA, ADVOCATE, LEARNED AR REPRESENTED ON BEHALF OF THE ASSESSEE. AND 3. IN THE REVENUES APPEAL IN ITA NO. 848/KOL2010 FOR THE A.Y 2004-05, THE REVENUE HAS RAISED THE FOLLOWING GROUND OF APPEAL:- 1. ON THE FACTS AND UNDER THE CIRCUMSTANCES OF THE CASE, LD.CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.14,00,283/- C LAIMED AS IRRECOVERABLE ADVANCE AND RS.17,44,313/- CLAIMED AS ACCRUED INTEREST WRITTEN OFF THOUGH THE ASSESSEE WAS NOT ENGAGED IN THE BUSINESS OF BANKING OR MONEY LENDING. 4. IT WAS SUBMITTED BY THE LEARNED JCIT/SR.DR T HAT IN THE COURSE OF ASSESSMENT THE ASSESSEES CLAIM OF BAD DEBT HAD BEEN DENIED TO THE ASSESSEE ON THE GROUND THAT ITA NO. 848/KOL/10 M/S. ENDOGRAM LEASING & TRADING CO. P.LTD 2 ASSESSEE WAS NOT IN THE BUSINESS OF MONEY LENDING. IT WAS THE SUBMISSION THAT THE LD.CIT(A) HAD DELETED THE DISALLOWANCE BY HOLDING T HAT THE AMOUNTS WRITTEN OFF WERE GENUINE AND WERE DULY SHOWN IN THE ACCOUNTS WRITTE N OFF AND THE CONDITIONS REQUIRED FOR DEDUCTION U/S. 36(2) OF THE ACT HAD BEEN COMPLIED W ITH. IT WAS THE SUBMISSION THAT THE ORDER OF THE LD.CIT(A) ON THIS ISSUE WAS LIABLE TO BE REVERSED. 5. IN REPLY, THE LEARNED AR FOR THE ASSESSEE DREW O UR ATTENTION TO THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL [ITAT KOLKATA A BENCH] IN ASSESSEES OWN CASE IN ITA NO. 399/KOL/2012 DATED 21-11-2013 FOR THE ASSESSMEN T YEAR 2008-09, WHEREIN THE TRIBUNAL HAS HELD THAT IT IS CLEAR THAT THE ASSESS EE COMPANYS PRINCIPAL BUSINESS WAS THAT OF MONEY LENDING. IT WAS THE SUBMISSION THAT THE T RIBUNAL HAVING GIVEN A FINDING THAT THE ASSESSEE COMPANYS PRINCIPAL BUSINESS WAS THAT OF M ONEY LENDING AND THE FACT THAT THE AMOUNTS WRITTEN OFF HAD NOT BEEN DISPUTED BY THE R EVENUE, IT WAS THE SUBMISSION THAT THE ORDER OF THE LD.CIT(A) ON THIS ISSUE WAS LIABLE TO BE UPHELD. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PERU SAL OF THE SAID ORDER OF THE CO- ORDINATE BENCH OF THIS TRIBUNAL IN ASSESSEES OWN C ASE (REFER TO SUPRA) FOR THE ASSESSMENT YEAR 2008-09 CLEARLY SHOWS THAT THE TRIBUNAL HAS GIVEN A FINDING THAT THAT THE PRINCIPAL BUSINESS OF THE ASSESSEE IS MONEY LENDING. THE REV ENUE HAS NOT BEEN ABLE TO DISLODGE THE FINDING OF THE LD.CIT(A) THAT THE AMOUNTS HAVE BEEN DULY SHOWN IN THE ACCOUNTS OF THE ASSESSEE AND HAS BEEN WRITTEN OFF. IN THE CIRCUMST ANCES, WE ARE OF THE VIEW THAT THE FINDING OF THE LD.CIT(A) ON THIS ISSUE IS ON A RIGH T FOOTING AND DOES NOT CALL FOR ANY INTERFERENCE. WE UPHOLD THE SAME. THE GROUND RAISED BY THE REVENUE STANDS DISMISSED. 7. IN THE RESULT, THE REVENUES APPEAL IN ITA NO. 848/KOL/2010 FOR THE ASSESSMENT YEAR 2004-05 STANDS DISMISSED AS STATED ABOVE. 5 / 6 /' 7 8 THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT 05/02 /2014 SD/- SD/- [ . , ! ] [ 1&' , ! ] [ ABRAHAM P..GEORGE, ACCOUNTANT MEMBER ] [GEORGE MATHAN, JUDICIAL MEMBER ] 2 / DATED 05/02/2014 ITA NO. 848/KOL/10 M/S. ENDOGRAM LEASING & TRADING CO. P.LTD 3 5 1 +..9 :94; / COPY OF THE ORDER FORWARDED TO: 1. . &* / THE APPELLANT : I.T.O W 12(2) AAYKAR BHAWAN, 7 TH FL.,CHOWRINGHEE SQ., KOL-69.. 2 +,&* / THE RESPONDENT- M/S. ENDOGRAM LEASING & TRADI NG CO.PVT. LTD 229, AJC BOSE RD, KOL-20. 3 4. . .5' / THE CIT, .5' ( )/ THE CIT(A) 5 . #<.7 +.' / DR, KOLKATA BENCH 6 . GUARD FILE . ,9 +./ TRUE COPY, 5'// BY ORDER, $ /ASSTT REGISTRAR **PRADIP SPS