ACIT NON CORPORATE CIRCLE-1, CHENNAI V. M.R.CHENDILNATHAN, CHENNAI

MA 271/CHNY/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3632 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 26-02-2020
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 23-10-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D ANAND
• Keywords: Bad and doubtful debts

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , . , BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER M.P. NO. 271/CHNY/2019 [IN I.T.A. NO. 2010/CHNY/2017] / ASSESSMENT YEAR: 2011-12 THE ASSISTANT COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE-1(1), CHENNAI. VS. SHRI M.R. CHENDILNATHAN, NO. 22, 2 ND STREET, KAMARAJ NAGAR, CHEMMENCHERRY, CHENNAI 600 019. [PAN:ACYPC9428N] ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI D. ANAND, ADVOCATE / RESPONDENT BY : SHRI AR. V. SREENIVASAN, JCIT / DATE OF HEARING : 14.02.2020 /DATE OF PRONOUNCEMENT : 26.02.2020 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: BY MEANS OF PRESENT MISCELLANEOUS PETITION, THE REVENUE SEEKS TO RECALL THE ORDER PASSED BY THE TRIBUNAL ON THE APPEAL FILED BY THE ASSESSEE IN I.T.A. NO. 2010/CHNY/2017 DATED 23.05.2019 RELEVANT TO THE ASSESSMENT YEAR 2011-12. BY RELYING ON THE PETITION, THE LD. DR HAS SUBMITTED THAT IN ITS ORDER IN PARA 5, THE TRIBUNAL HAS MISTAKENLY CONSTRUED THAT THE CLAIM OF ADVANCES OF .31,43,864/- WERE ON ACCOUNT OF IRRECOVERABLE SECURITY DEPOSIT MAINTAINED WITH NATIONAL OXYGEN AND EAST COAST ACETYLENE IN HIS MEDICAL M.P. NO.271/ CHNY/19 2 GAS WHICH IS FACTUALLY INCORRECT AND THUS, IT WAS PLEADED FOR RECALLING THE ORDER OF THE TRIBUNAL FOR FRESH ADJUDICATION. 2. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE SUPPORTED THE ORDER PASSED BY THE TRIBUNAL. 3. WE HAVE HEARD BOTH THE SIDES, PERUSED THE ORDER PASSED BY THE TRIBUNAL AS WELL AS ORDERS OF AUTHORITIES BELOW. WITH REGARD TO THE DISALLOWANCE ON LOSS OF CYLINDERS .23,95,625/- PREFERRED IN THE APPEAL OF THE REVENUE, THE DEPARTMENT HAS NOT BROUGHT ON RECORD ANY MISTAKE APPARENT IN THE ORDER PASSED BY THE TRIBUNAL OR THE LD. DR ADVANCED ANY ARGUMENT IN THIS RESPECT. THUS, WE ARE NOT INCLINED TO GIVE ANY FINDINGS OVER IT. 4. WITH REGARD TO THE DISALLOWANCE OF .31,43,864/-, AGAINST THE WRITTEN SUBMISSIONS OF THE ASSESSEE BEFORE THE LD. CIT(A) THAT IN THE NORMAL COURSE OF HIS BUSINESS OF REAL ESTATE CARRIED OUT IN THE NAME AND STYLE OF M/S. VIJAY RAJA HOMES, THE ASSESSEE HAD ADVANCED .31,43,864/- FOR AGGREGATION OF PROCUREMENT OF LAND TO THE BROKERS AND LAND OWNERS, WHICH HAS BECOME IRRECOVERABLE AND SINCE THE ASSESSEE COULD NOT PRODUCE ANY EVIDENCE TO ESTABLISH THAT THE CLAIMED ADVANCES HAD BEEN TAKEN INTO ACCOUNT IN COMPUTING THE INCOME OF THE ASSESSEE, EITHER OF THE RELEVANT PREVIOUS YEAR (IN WHICH THE SAME HAVE BEEN WRITTEN OFF) OR OF AN EARLIER PREVIOUS YEAR, THE LD. CIT(A) CONFIRMED THE ADDITION. HOWEVER, ON APPEAL, WE FIND THAT IN ITS M.P. NO.271/ CHNY/19 3 ORDER IN PARA 5, THE TRIBUNAL HAS CONSTRUED THAT THE CLAIM OF ADVANCES OF .31,43,864/- WERE ON ACCOUNT OF IRRECOVERABLE SECURITY DEPOSIT MAINTAINED WITH NATIONAL OXYGEN AND EAST COAST ACETYLENE IN HIS MEDICAL GAS, WHICH, IS A MISTAKE APPARENT ON RECORD. BY ACCEPTING THE SUBMISSIONS OF THE PETITIONER, WE HEREBY RECALL THE ORDER OF THE TRIBUNAL DATED 23.05.2019 FOR LIMITED PURPOSE TO ADJUDICATE THE GROUND RAISED IN THE APPEAL OF THE ASSESSEE RELATING TO BAD DEBTS OF .31,43,864/-. THE REGISTRY IS DIRECTED TO POST THE APPEAL FOR HEARING ON LIMITED PURPOSE ON REGULAR COURSE BY ISSUING NOTICE TO BOTH THE PARTIES. 5. IN THE RESULT, ALL THE MP FILED BY THE REVENUE IS ALLOWED AS STATED ABOVE. ORDER PRONOUNCED ON THE 26 TH FEBRUARY, 2020 IN CHENNAI. SD/- SD/- (INTURI RAMA RAO) ACCOUNTAN T MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 26.02.2020 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.