The Federation of Motor Sports Clubs of India, CHENNAI V. ITO, CHENNAI

MA 100/CHNY/2015

• Counselvise Citation: [2015] 124 COUNSELVISE.COM (IT) 3434 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 04-09-2015
• Appeal Filed By: Assessee
• Bench Allotted: D
• Assessment Year: 2008-2009
• Appeal Filed On: 24-07-2015
• Court: TRIBUNAL
• Assessee Lawyers: T N SEETHARAMAN
• Keywords: Depreciation; Bad and doubtful debts

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI ... , . , , BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER M.P.NOS.99,100 & 101/MDS./2015 ( I.T.A.NOS. 2169, 2170 & 2171 /MDS./2014 ) ( ! '! / ASSESSMENT YEARS : 2006-07, 2008-09 & 2010-11 ) THE FEDERATION OF MOTOR SPORTS CLUBS OF INDIA, KRISHNA TOWERS-1, 6 TH FLOOR, APT. NO.25, 50 SARDAR PATEL ROAD, CHENNAI 600 113. VS. THE ASSISTANT DIRECTOR OF INCOME TAX , EXEMPTIONS IV, CHENNAI. PAN AAACT 7983Q ( / APPELLANT ) ( / RESPONDENT ) #$% & ' / APPELLANT BY : MR. T.N. SEETHARAMAN, ADVOCATE ()$% & ' / RESPONDENT BY : DR.B.NISCHAL, JCIT, D.R * + & ,- / DATE OF HEARING : 04.09.2015 .' & ,- /DATE OF PRONOUNCEMENT : 04.09.2015 / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THESE THREE MISCELLANEOUS PETITIONS ARE FILED BY TH E ASSESSEE, PRAYING FOR ADJUDICATION OF THE GROUNDS THAT WAS LE FT OUT WHILE DISPOSING OFF THE APPEALS IN ITA NOS.2169, 2170 & 2171 /MDS./2014 M.P NOS.99 TO 101/MDS/2015 2 VIDE ORDER DATED 30.06.2015 FOR THE ASSESSMENTS 200 6-07, 2008-09 & 2010-11 YEARS RESPECTIVELY. 2. THE LD. A.R. SUBMITTED BEFORE US THAT THE FOLLO WING GROUNDS REMAINS TO BE ADJUDICATED IN THE ORDER DATED 30.06. 2015. FOR A.Y : 2006-07 2.1. GROUND NO.4 THE COMMISSIONER (APPEALS) ERRED IN CONFIRMING THE DISALLOWANCE OF RS.14 91 267/- (THE SECOND ISSUE) BEING BAD DEBTS WRITTEN OFF STATING THAT THE AMOUNT TO BE RECEIVED RELATES TO T HE CURRENT YEAR AND CANNOT BECOME BAD DEBT IMMEDIATELY; THE REASON STATED BY T HE ASSESSING OFFICER AND THE COMMISSIONER (APPEALS) FOR THE DISALLOWANCE IS CONT RARY TO THE EXPRESS LANGUAGE OF SECTION 36(2)(I) OF THE ACT AND THE DECISION OF THE SUPREME COURT IN TRF LTD., VS CIT (2010) 323 ITR 397 (SC) AS WELL AS THE CIRCU MSTANCES FOR THE WRITE OFF EXPLAINED IN PARA 10.3 OF THE WRITTEN SUBMISSIONS F ILED BEFORE THE COMMISSIONER (APPEALS). 2.2 GROUND NO.5 - THE COMMISSIONER (APPEALS) ERRED IN NOT ADJUDICATI NG UPON (THE THIRD ISSUE) RELATING TO NON EXCLUSION OF ` 3,08,951/- BEING BANK INTEREST NOT RECEIVED AND DENIAL OF CREDIT OF ` 3,00,6571- BEING TDS ON WHICH THE APPELLANTS REPRESENTATIVE HAD MADE SUBMISSIONS IN PARAS 11.1 TO 11.6 OF THE WRITTEN SUBMISSION DATED 21.02.2014. 2.3 GROUND NO.6 - THE COMMISSIONER (APPEALS) ERRED IN SIMILARLY NOT R EFERRING TO / DECIDING (THE FOURTH ISSUE) RELATING TO DISALL OWANCE OF DEPRECIATION OF RS.75,067/-; THE APPELLANT SUBMITS THAT ITS CLAIM I S SUPPORTED BY THE DECISIONS IN M.P NOS.99 TO 101/MDS/2015 3 THE CASE OF HONBLE PUNJAB AND HARYANA HIGH COURT I N THE CASE OF CIT VS MARKET COMMITTEE, PIPLI (2011) 330 ITR 16 (P & H) AND CIT VS TINY TOTS EDUCATION SOCIETY (2011) 330 ITR 21 DISTINGUISHING THE CASE O F ESCORTS INDIA LIMITED VS UNION OF INDIA (199 ITR 43) AND THE ORDER OF THE IT AT, A BENCH CHENNAI DATED 17.04.2013 IN L.T.A.NOS.2261 TO 2263/CHNY/2012. FOR A.Y : 2008-09 2.4 GROUND NO.3 - THE COMMISSIONER (APPEALS) WHILE SETTING OUT THE FACTS/ISSUES RELATING TO ASSESSMENT YEAR 2008-09(WR ONGLY MENTIONING THE ASSESSMENT YEAR AS 2007-08) IN PARA 2.4/2.5 OF HIS ORDER, HAS IN PARA 3.10 OF HIS ORDER (AGAIN MENTIONING THE ASSESSMENT YEAR WRONGLY AS 2007-08) DISMISSED THE APPEAL SUMMARILY WITH CRYPTIC REMARKS AND WITHOUT A DDRESSING THE SPECIFIC ISSUES RAISED. FOR A.Y : 2010-11 2.5 GROUND NO.2 - THE COMMISSIONER (APPEALS), AFTER SUM MARIZING THE CONTENTS OF THE ASSESSMENT ORDER IN PARAS 2.6/2.7 O F THIS ORDER, HAS SUMMARILY DISMISSED THE APPEAL-VIDE PARA 3.2.1 WITHOUT ANY DI SCUSSION WHATSOEVER ON THE ISSUES RAISED IN THE APPEAL. 2.6 GROUND NO.3 - THE APPELLANT SUBMITS THAT BOT H IN THE GROUNDS OF APPEAL BEFORE THE COMMISSIONER (APPEALS) AND IN A WRITTEN SUBMISSION DATED 23.04.2014 FILED BEFORE THE LD. CIT(A) THE APPELLAN T HAS DETAILED ITS OBJECTIONS TO THE ASSESSMENT ORDER. THE ISSUES INVOLVED IN THE A PPEAL RELATE TO (I) THE ADIT(E)S FINDING THAT THE APPELLANT FALLS WITHIN THE AMENDED PROVISIONS OF SECTION 2(15) OF THE ACT AND IS NOT ELIGIBLE FOR EXEMPTION U/S.11 OF THE ACT AND (II) ASSESSMENT OF SPONSORSHIP MONEY TO THE EXTENT OF RS.50 LAKHS DISCLOSED AS ADVANCE IN THE APPELLANTS ACCOUNTS AS INCOME OF THE PRESENT YEAR. M.P NOS.99 TO 101/MDS/2015 4 (III) LEVY OF INTEREST U/S.234A /234B NONE OF WHICH HAVE BEEN CONSIDERED AND DECIDED BY THE COMMISSIONER (APPEALS) IN HIS ORDER. 3. LD. A.R. PLEADED BEFORE US THAT FOR ADJUDICATIO N OF THE AFORE-STATED GROUNDS THE ORDER OF THE TRIBUNAL DATE D 30.06.2015 MAY BE RECALLED. LD. D.R AGREED WITH THE LD. A.R. THAT THE ABOVE MENTIONED GROUNDS REMAIN TO BE ADJUDICATED AND THER EFORE, HE DID NOT HAVE ANY OBJECTION FOR RECALLING OF THE ORDER O F THE TRIBUNAL. 4. AFTER HEARING BOTH THE SIDES, WE ARE OF THE CON SIDERED VIEW THAT NON-ADJUDICATION OF THE GROUNDS RAISED IN THE APPEA LS BY THE BENCH WILL AMOUNT TO MISTAKE APPARENT ON THE RECORD IN TH E ORDER OF THE TRIBUNAL. THEREFORE, INVOKING THE PROVISIONS OF SEC TION 254(2) OF THE ACT WE HEREBY RESTORE THE APPEAL ON FILE SO AS TO A DJUDICATE THE GROUNDS THAT WERE LEFT OUT TO BE ADJUDICATED ON THE EARLIER OCCASION AND HEREBY DIRECT THE REGISTRY TO POST THESE APPEALS FO R HEARING ON 14/09/2015 AS PART HEARD . M.P NOS.99 TO 101/MDS/2015 5 5. IN THE RESULT, THE MISCELLANEOUS APPLICATIONS O F THE ASSESSEE ARE ALLOWED TO THE EXTENT AS INDICATED HEREINABOVE. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON THE 4 TH SEPTEMBER, 2015 AT CHENNAI. SD/- SD/- ( . . . ) ( N.R.S.GANESAN ) ( . '#$ %' ) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 4 TH SEPTEMBER, 2015. K S SUNDARAM. & (,/0# 1 0', /COPY TO: 1. #$% /APPELLANT 2. ()$% /RESPONDENT 3. * 2, (#) /CIT(A) 4. * 2, /CIT 5. 05 (,6 /DR 6. ! 7+ /GF