The DCIT, Ahmedabad Circle-3, Ahmedabad V. Innovate Securities (P) Ltd., Ahmedabad

MA 345/AHD/2009

• Counselvise Citation: [2010] 123 COUNSELVISE.COM (IT) 4674 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 2 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-06-2010
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2001-2002
• Appeal Filed On: 09-10-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Bad and doubtful debts
• Section: 28

Judgement Text

M.A.345-09 A.Y. 2001-02 1 IN THE INCOME_TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI T.K. SHARMA AND SHRI D.C. AGR AWAL . MISCELLANEOUS APPLICATION NO .345/AHD/2009 (ARISING OUT OF ITA. NO. 371/AHD/2005 & C.O. NO. 91/AHD/2005.) (ASSESSMENT YEAR: 2001 -02 ) THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3 5 TH FLOOR, INSURANCE BUILDING, AHMEDABAD. VS INNOVATE SECURITIES PVT. LTD., 1 ST FLOOR, DEVANSHISH, NR. NEST HOTEL, SARDAR PATEL NAGAR ROAD, AHMEDABAD. (APPELLANT) (RESPONDENT) PAN: AAACI 4767 R APPELLANT BY : SHRI K. MADHUSUDAN, SR.D.R. RESPONDENT BY : SHRI SANJAY R. SHAH. ( (( ( )/ )/)/ )/ ORDER PER SHRI D.C. AGRAWAL THIS IS A MISCELLANEOUS APPLICATION FILED BY DEPUT Y COMMISSIONER OF INCOME TAX,CIRCLE-3, AHMEDABAD FOR THE ASSESSMENT YEAR 2001-02 IN THE CASE OF D.C.I.T. VS. INNOVATE SECURITIES PVT. LTD., IN THE APPELLATE ORDER OF THE TRIBUNAL IN ITA NO.371/AHD/2005. THE REVENUE HAS POINTED OUT THAT CLAIM OF BAD DEBT RAISED BY THE ASSESSEE IN ITS C.O. NO.91/AHD/2 005 FOR THE ASSESSMENT YEAR 2001-02 HAS NOT BEEN DECIDED. 2. BEFORE US LD. A.R. FOR THE ASSESSEE ALSO SUBMITT ED THAT SIMILAR ISSUE HAD BEEN RAISED BY THE REVENUE IN ITS APPEAL M.A.345-09 A.Y. 2001-02 2 NO.ITA.371/AHD/05 AS GROUND NO.3 WHICH ALSO REMAINE D FROM ADJUDICATION. THE GROUND NO.3 IN REVENUES APPEAL A ND CROSS OBJECTION OF THE ASSESSEE ON THAT ISSUE ARE AS UNDE R :- REVENUES APPEAL GROUND NO.3 . 3. THE LD. C.I.T.(A) HAS ERRED IN LAW AND ON FACTS OF THE CASE IN ALLOWING BAD DEBT OF RS.63,784/- AS TRADING LOS S. GROUND OF C.O. RAISED BY ASSESSEE . 1. THOUGH THE LD. C.I.T. (A) ALLOWED THE CLAIM OF DEDUCTION OF BAD DEBTS FOR RS.63,784/- U/S. 28(I), THE LD. C. I.T.(A) ERRED IN LAW AND ON FACTS IN HOLDING THAT SUCH BAD DEBTS CANNOT BE ALLOWED AS DEDUCTION IN THE CASE OF A SHA RE- HOLDER U/S. 36(2) R. W. S. 36(2)(VII). IT IS SUBMIT TED THAT THE CLAIM OF THE ASSESSEE CAN BE ALLOWED BOTH U/S. 36(1 )(VII) AS WELL AS U/S. 28(I) OF THE I. T. ACT. IT IS SUBMI TTED THAT IT BE SO HELD NOW. 3. THE LD. A.R. POINTED OUT THAT THE TRIBUNAL HAS I N FACT PASSED THE IMPUGNED ORDER AS CONSOLIDATED ORDER IN RESPECT OF 35 ASSESSEES AND INVOLVE COMMON ISSUES AND ISSUE REGARDING ALLOW ANCE OF BAD DEBT EITHER U/S. 36(1)(VII) OR AS A TRADING LOSS U/ S. 28 (IV) HAS BEEN CONSIDERED IN THE CASE OF OTHER ASSESSES IN PARAGRA PH 8 AND MATTER HAS BEEN RESTORED TO THE FILE OF THE A.O. SIMILAR D ECISION HAS TO FOLLOW IN THE CASE OF THE PRESENT ASSESSEE. 4. HOWEVER, HE FAIRLY ADMITTED THAT GROUND NO.3 IN REVENUES APPEAL AND CROSS OBJECTION IN ASSESSEES APPEAL WER E NOT SPECIFICALLY ADJUDICATED. WE HAVE HEARD THE D..R. M.A.345-09 A.Y. 2001-02 3 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS WE RE-CA LL THE ORDER OF THE TRIBUNAL FOR THE PURPOSES OF ADJUDICATING GROUN D NO.3 IN REVENUES APPEAL AND CROSS OBJECTION FILED BY THE A SSESSEE IN RESPONSE TO REVENUES APPEAL. AS A RESULT, M.A. FILED BY THE REVENUE IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 11 / 06 / 2010. SD/- SD/- (T.K. SHARMA ) (D. C. AGRAWAL) . JUDICIAL MEMBER. ACCOUNTANT MEMBER AHMEDABAD. DATED:11 / 06 /2010. S.A.PATKI. COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNED. 5. THE DR.,ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHMEDABAD.