ACIT, CHENNAI V. M/s. Shriram Transport Finance Co.Ltd., CHENNAI

ITA 924/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64098 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2008-2009
• Appeal Filed On: 23-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIRUDH RAI IRS
• Assessee Lawyers: R SIVARAMAN
• Keywords: Bad and doubtful debts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI V. DURGA RAO, JUDICIAL MEMBER I.T.A.NO. 924/MDS/2012 ASSESSMENT YEAR : 2008-09 THE ASSISTANT COMMISSIONER OF INCOME-TAX, COMPANY CIRCLE-VI(2), CHENNAI 34. VS. M/S. SHRIRAM TRANSPORT FINANCE CO. LTD., MOOKAMBIKA COMPLEX, 3 RD FLOOR, NO.4, LADY DESIKA ROAD, MYLAPORE, CHENNAI 4. PAN AAACS 7018R (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANIRUDH RAI, IRS, CIT RESPONDENT BY : SHRI R.SIVARAMAN, ADVOCAT E DATE OF HEARING : 11 TH JULY, 2012 DATE OF PRONOUNCEMENT : 02 ND AUGUST, 2012 O R D E R PER DR. O.K. NARAYANAN, VICE-PRESIDENT THIS APPEAL FILED BY THE REVENUE RELATES TO THE ASS ESSMENT YEAR 2008-09. THE APPEAL IS DIRECTED AGAINST THE O RDER OF THE ITA 924/12 :- 2 -: COMMISSIONER OF INCOME-TAX(APPEALS)V AT CHENNAI DA TED 31.1.2012. THE APPEAL ARISES OUT OF THE ASSESSMENT COMPLETED UNDER SEC.143(3) READ WITH SEC.147 OF THE INCOME-TA X ACT, 1961. 2. THE FIRST GROUND RAISED BY THE REVENUE IS THAT T HE COMMISSIONER OF INCOME-TAX(APPEALS) HAS ERRED IN DE LETING THE DISALLOWANCE OF BAD DEBTS OF ` 37,89,85,000/-. THE SAME ISSUE WAS CONSIDERED BY THE TRIBUNAL IN ASSESSEES OWN CA SE FOR THE ASSESSMENT YEAR 2006-07 IN ITA NOS. 725 & 726/MDS/2 010 THROUGH ITS COMMON ORDER DATED 16.12.2010. THIS IS SUE HAS BEEN PARTICULARLY CONCLUDED IN PARAGRAPH 8 OF THE SAID O RDER OF THE TRIBUNAL. RELYING ON THE JUDGMENT OF THE HONBLE S UPREME COURT IN THE CASE OF TRF VS. CIT (323 ITR 397) THE TRIBUN AL HELD THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) WAS JUSTIFI ED IN ALLOWING THE DEDUCTION OF BAD DEBTS. FOLLOWING THE SAID ORDER OF THE TRIBUNAL, THIS GROUND RAISED BY THE REVENUE IS REJECTED. 3. THE SECOND ISSUE RAISED BY THE REVENUE IS THAT T HE COMMISSIONER OF INCOME-TAX(APPEALS) HAS ERRED IN DE LETING THE DISALLOWANCE OF VALUE OF INVESTMENTS WRITTEN OFF OF ` 1,05,752/-. THIS ISSUE AGAIN WAS CONSIDERED BY THE TRIBUNAL IN THE ORDER MENTIONED ABOVE, PASSED FOR THE ASSESSMENT YEAR 200 6-07. THE TRIBUNAL HAS UPHELD THE DECISION OF THE COMMISSIONE R OF INCOME- ITA 924/12 :- 3 -: TAX(APPEALS) IN ACCEPTING THE CLAIM OF THE ASSESSEE FOR DEDUCTION TOWARDS DISALLOWANCE OF INVESTMENTS WRITTEN OFF. I N VIEW OF THE ABOVE, THIS ISSUE IS DECIDED AGAINST THE REVENUE. 4. THE THIRD ISSUE RAISED BY THE REVENUE IS THAT TH E COMMISSIONER OF INCOME-TAX(APPEALS) HAS ERRED IN DE LETING THE DISALLOWANCE OF LOSS ON SALE OF INVESTMENTS OF ` 2,76,120/-. FOR THE REASONS STATED ABOVE, THIS GROUND IS REJECTED. 5. THE NEXT ISSUE RAISED BY THE REVENUE IS THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS ERRED IN DI RECTING THE ASSESSING OFFICER TO ALLOW THE LOSS ARISING OUT OF DERIVATIVES/HEDGING TRANSACTIONS IN FOREIGN EXCHANG E. THE NEXT ISSUE AGAIN IS THAT THE COMMISSIONER OF INCOME-TAX( APPEALS) HAS ERRED IN DELETING THE DERIVATIVE LOSS CLAIMED BY TH E ASSESSEE. THESE ISSUES HAVE BEEN AGAIN CONSIDERED BY THE TRIB UNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2006-07 , IN THE APPEALS MENTIONED IN ABOVE PARAGRAPHS. THE TRIBUNA L HAS UPHELD THE CLAIM OF DEDUCTIONS MADE BY THE ASSESSEE . THEREFORE, THESE ISSUES ARE ALSO DECIDED AGAINST TH E REVENUE. 6. IN SHORT, WE FIND THAT ALL THE ISSUES RAISED BY THE REVENUE, IN THE PRESENT APPEAL STAND COVERED IN FAVOUR OF THE A SSESSEE BY THE ORDER OF THE TRIBUNAL PASSED FOR THE EARLIER ASSESS MENT YEAR ITA 924/12 :- 4 -: 2006-07. FOLLOWING THE SAID ORDER OF THE TRIBUNAL, WE FIND THAT ALL THE ISSUES IN THE PRESENT APPEAL RAISED BY THE REVE NUE ARE TO BE REJECTED. 7. IN RESULT, THIS APPEAL FILED BY THE REVENUE IS D ISMISSED. ORDER PRONOUNCED ON THURSDAY, THE 02 ND OF AUGUST, 2012 AT CHENNAI. SD/- SD/- (V. DURGA RAO) (DR.O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 2 ND AUGUST, 2012 MPO* COPY TO : APPELLANT/RESPONDENT/CIT/CIT(A)/DR