MODERN DAIRY & ICE PLANT, MUMBAI V. ACIT-20(2), MUMBAI

ITSSA 50/MUM/2009

• Counselvise Citation: [2010] 124 COUNSELVISE.COM (IT) 9417 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 1 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 26-03-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 24-04-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIRENDRA OJHA; S S RANA
• Keywords: Bad and doubtful debts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI BEFORE SHRI R.K.GUPTA, JM AND SHRI R.S.SYAL, AM IT(SS)A NO.50/MUM/2009 : BLOCK PERIOD 01.04.1988 TO 10.12.1998 M/S.MODERN DAIRY & ICE PLANT H-20/21, ANSA INDUSTRIAL ESTATE SAKI VIHAR ROAD, ANDHERI (EAST) MUMBAI 400 072. PA NO.AAGFM6012L. VS. THE ASSTT.COMMISSIONER OF INCOME-TAX CIRCLE 20(2) MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SANJAY JHANWAR RESPONDENT BY : S/SHRI S.S.RANA & VIRENDRA OJHA O R D E R PER R.S.SYAL (AM) : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDE R PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 20.02.2009 IN RELATION TO THE BLOCK PERIOD 01.04.1988 TO 10.12.1998. 2. THE ASSESSEE FILED RETURN DECLARING UNDISCLOSED INCOME AT RS.55 LAKHS. THE ASSESSMENT WAS COMPLETED U/S.158BC ON 29.12.2000 DE TERMINING UNDISCLOSED INCOME AT RS.77,89,855. THE LEARNED CIT(A) APPROVED THE VIEW TAKEN BY THE ASSESSING OFFICER. HOWEVER, THE TRIBUNAL ALLOWED CE RTAIN RELIEFS. HOWEVER THE DISALLOWANCE OF RS.14,07,500 ON ACCOUNT OF BAD DEB TS, WHICH IS SUBJECT MATTER OF DISPUTE IN THE PRESENT APPEAL, WAS CONFIRMED BY TH E TRIBUNAL. WHILE GIVING EFFECT TO THE TRIBUNALS ORDER, THE A.O. DETERMINED TOTAL UNDISCLOSED INCOME AT RS.69,07,500 BY ADDING A SUM OF RS.14,07,500 TOWARD S DISALLOWANCE OF CLAIM OF BAD DEBTS UPHELD BY THE TRIBUNAL TO THE INCOME DECL ARED BY THE ASSESSEE AT RS.55 LAKHS. NO RELIEF WAS ALLOWED IN THE FIRST APPEAL. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD WE FIND FROM THE COPY OF THE BLOCK ASSESSMEN T ORDER, WHICH IS AVAILABLE AT IT(SS)A NO.50/MUM/2009 M/S.MODERN DAIRY & ICE PLANT. 2 PAGE 58 ONWARDS OF THE PAPER BOOK THAT THOUGH THE ASSESSEE DECLARED UNDISCLOSED INCOME OF RS.55 LAKHS, BUT THE ASSESSING OFFICER DI D NOT ACCEPT THE SAME AND PROCEEDED TO DETERMINE THE UNDISCLOSED INCOME ITEM- WISE AT RS.77,89,855. THE TRIBUNAL ALLOWED CERTAIN RELIEFS BUT UPHELD THE ADD ITION OF RS.14,07,500 TOWARDS BAD DEBTS. THE FOLLOWING POSITION, AS SET OUT IN TH E ORDER OF THE LEARNED CIT(A) AGAINST THE APPEAL AGAINST THE ORDER U/S.158BFA DAT ED 7.11.2005, EMERGES:- SL. NO. ISSUE AS PER BLOCK RETURN AS PER LD.AO POSITION AFTER ITATS ORDER 1. CASH PAID TO GANGANJEET 1,50,000 1,50,000 1,50,000 2. CASH PAID TO DOSHI 10,000 10,000 10,000 3. LOAN TO SANT CHEMICALS 14,07,500 14,07,500 14,07,500 4. PEAK 27,46,405 23,77,879 23,77,879 5. A. MISCELLANEOUS INCOME TO COVER DISCREPANCIES, IF ANY FOUND. 25,93,595 --- --- B. DEDUCTION ON ACCOUNT OF BAD DEBTS SANT CHEMICALS. (-)14,07,500 --- --- C. ADDITIONAL INCOME FROM MILK BUSINESS --- 38,44,476 --- TOTAL 55,00,000 77,89,855 39,45,379 4. THE FACTUAL POSITION ABOUT THE CONTENTS OF THE A BOVE TABLE IS NOT DISPUTED BY EITHER SIDE BEFORE US. IT IS OBSERVED FROM THE AFOR E-NOTED TABLE THAT THE ASSESSING OFFICER, GIVING GO-BYE TO THE UNDISCLOSED INCOME D ECLARED BY THE ASSESSEE AT RS.55 LAKHS, COMPUTED THE TOTAL UNDISCLOSED INCOME AT HI S OWN AT RS.77,89,855 INTER ALIA INCLUDING A SUM OF RS.38,44,476 BEING ADDITION ON A CCOUNT OF ADDITIONAL INCOME FROM MILK BUSINESS. THE SAID ADDITION WAS DELETED B Y THE TRIBUNAL AND THE INCOME WHICH REMAINED AFTER GIVING EFFECT TO THE TRIBUNAL S ORDER CAME AT RS.39.45 LAKHS. THE LD. AR CONTENDED THAT SINCE THE FINAL INCOME DE TERMINED BY THE TRIBUNAL WAS LESS THAN THAT RETURNED BY THE ASSESSEE, THE SAME S HOULD BE ADOPTED INCLUDING THE DISALLOWANCE OF RS. 14.07 LACS. WE FIND FORCE IN THIS SUBMISSION FOR THE REASON THAT THE ASSESSEE ITSELF DECLARED UNDISCLOSED INCOM E AT RS.55 LAKHS AND EVEN WHEN THE DISALLOWANCE OF RS. 14.07 LACS IS ADDED TO THE INCOME FINALLY DETERMINED BY THE IT(SS)A NO.50/MUM/2009 M/S.MODERN DAIRY & ICE PLANT. 3 TRIBUNAL, THE SAME IS STILL LESS THAN THAT ORIGINA LLY DECLARED BY THE ASSESSEE AT RS.55.00 LACS. WE, THEREFORE, HOLD THAT THE SEPARA TE ADDITION OF RS.14.07 LAKHS MADE BY THE A.O. WHILE GIVING EFFECT TO THE TRIBUNA L ORDER IS NOT SUSTAINABLE SINCE THE DECLARED INCOME IS ALREADY MORE THAN THE INCOME FINALLY DETERMINED BY THE TRIBUNAL INCLUDING THE SAID ADDITION OF RS.14.07 LA KHS. WE, THEREFORE, HOLD THAT THE TOTAL INCOME DECLARED BY THE ASSESSEE AT RS.55 LAKH S BE FINALLY ACCEPTED. 5. IN THE RESULT, THE APPEAL IS ALLOWED IN THE ABOV E TERMS. ORDER PRONOUNCED ON THIS 26 TH DAY OF MARCH 2010. SD/- SD/- ( R.K.GUPTA ) ( R.S.SYAL ) JUDICIAL MEMBER ACCOUNTANT M EMBER MUMBAI : 26 TH MARCH, 2010. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT - XX, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.