DCIT 14 (2) (1) , MUMBAI V. INFRASTRUCTURE LEASING & FINANCIAL SERVICES LTD, MUMBAI

MA 571/MUM/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8066 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 20-01-2020
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2005-2006
• Appeal Filed On: 31-10-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KAVITA P KAUSHIK
• Keywords: Bad and doubtful debts
• Section: 254(2)

Judgement Text

1 MA.NO.571/MUM/2019 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C, MUMBAI BEFORE SHRI G MANJUNATHA (ACCOUNTANT MEMBER) AND SHRI RAVISH SOOD (JUDICIAL MEMBER) M.A. NO.571/MUM/2019 (ARISING OUT OF ITA NO.2841/MUM/2011) (ASSESSMENT YEAR: 2005-06) ACIT - 10(1) [NOW DCIT-14(2)(1) ROOM NO.455 AAYKAR BHAWAN, M.K.ROAD MUMBAI-400 020 VS INFRASTRUCTURE LEASING & FINANCIAL SERVICES LIMITED IL & FS FINANCIAL CENTRE PLOT NO.C-22, G BLOCK BANDRA KURLA COMPLEX BANDRA(E) MUMBAI-400 051 PAN: AAACI0989F APPLICANT RESPONDENT APPLICANT BY SMT. KAVITA P. KAUSHIK , DR RESPONDENT BY NONE DATE OF HEARING 10.01.2020 DATE OF PRONOUNCEMENT 20 .01.2020 O R D ER PER G MANJUNATHA: AM THE REVENUE HAS FILED THIS MISCELLANEOUS APPLICATIO N U/S 254(2) OF THE I.T.ACT, 1961 AGAINST THE ORDER OF THE TRIBUNAL IN ITA NO.2841/MUM/2011, DATED 30/04/2019 FOR THE AY 2005- 06. 2 MA.NO.571/MUM/2019 2. THE REVENUE HAS NARRATED FACTS AND MISTAKES STAT ED TO APPARENT ON RECORD IN THE ORDER OF TRIBUNAL, DATED 30/04/201 9. THE RELEVANT CONTENTS OF MISCELLANEOUS APPLICATION FILED BY THE REVENUE ARE AS UNDER:- 2. IT IS PRAYED THAT BY WAY OF THE APPEAL O F THE REVENUE FOR ASSESSMENT YEAR 2005-06 IN ITA NO, 2341/MUM/2011, REVENUE HAD URGED A TOTAL OF ELEVEN GROUNDS OF APPEAL BEFORE HONBLE ITAT. HOWE VER, IN THE INSTANT ORDER DISPOSING OFF THE SAID APPEAL OF REVENUE FOR AY 200 5-06 (AMONG OTHER APPEALS OF REVENUE AND APPEALS OF ASSESSEE FOR A TO TAL OF THREE ASSESSMENT YEARS, I.E., AY 2005-06, 2006-07 AND 2007-08), THE HONBLE ITAT HAS NOT ADJUDICATED THREE GROUNDS OF APPEAL OF THE REVENUE FOR AY 2005-06, AS SPECIFIED IN THE SUCCEEDING PARAGRAPH. IT IS PRAYED THAT THE ORDER OF THE HONBLE TRIBUNAL, THEREFORE, SUFFERS FROM MISTAKE A PPARENT FROM RECORD TO THE EXTENT OF NOT ADJUDICATING THE SAID THREE GROUNDS O F REVENUE'S APPEAL FOR AY 2005-06. 3. THE GROUNDS OF APPEAL NOT ADJUDICATED IN THE ORD ER OF HONBLE ITAT ARE AS BELOW: (A) GROUND NO. 2 AS PER FORM NO. 36_OF REVEN UE'S APPEAL FOR AY 2005-06: 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CTT(A) ERRED IN DELETING THE DISALLOWANCE OF BAD DEBTS REL ATING TO SPIC LTD. AND FIDELITY INDUSTRIES LTD WITHOUT APPRECIATING THAT T HE ASSESSEE DID NOT FILE ANY DETAILS RELATING TO THE DEBTS WRITTEN OFF IN RESPEC T OF THE SAID PARTIES AND THE ASSESSING OFFICER SHOULD HAVE BEEN GIVEN AN OPPORTU NITY TO EXAMINE THE CLAIM OF THE ASSESSEE THAT THE WRITE OFF OF THE DEBTS RELATING TO THE SAID PARTIES FULFILLED THE CONDITIONS LAID DOWN IN 36(1) (VII) READ WITH SECTION 36(2) OF THE INCOME TAX ACT, 1961 (B) GROUND NO.9, AS PER FORM NO- 36 OF REVEN UE'S APPEAL 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CT{A) ERRED IN DELETING THE DISALLOWANCE OF RS. 39,83,33 5/- MADE BY THE ASSESSING OFFICER OUT OF THE CLAIM OF DEDUCTION MADE BY THE ASSESSES U/S 36(1)(VII) OF THE INCOME TAX ACT. (C) GROUND NO.10, AS PER FORM 36 OF REVENUE'S APPEAL FOR AY 2005-06: 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD,CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE OF RS.39,54, 481/-MADE BY THE ASSESSING OFFICER OUT OF THE EXPENDITURE INCURRED BY THE ASSESSES UNDER THE HEAD 'TRAVELLING & CONVEYANCE, REPAIRS & MAINTENANC E, STAFF TRAINING & WELFARE & LEGAL & CONSULTATION WITHOUT APPRECIATING THAT THE ASSESSEE DID NOT FURNISH SPECIFIC DETAILS O/ THE EXPENSES FOR TEST VERIFICATION BY THE ASSESSING OFFICER. ' 3 MA.NO.571/MUM/2019 4. IN VIEW OF THE ABOVE, THE ORDER OF THE ITAT REQU IRES RECONSIDERATION TO THE EXTENT THAT THE SAID THREE GROUNDS HAVE REMAINED TO BE ADJUDICATED. HONBLE ITAT IS THEREFORE REQUESTED TO KINDLY ADMIT THIS MI SCELLANEOUS APPLICATION OF THE REVENUE AND RECONSIDER /RECTIFY THE AFORESAID M ISTAKE APPARENT FROM RECORD IN THE ORDER PASSED ON 30.04.2019 IN APPEAL ITA NO. 2841/MUM/2011. 5. THE HONBLE ITAT MAY DECIDE THE APPEAL ON MERITS. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ISCELLANEOUS APPLICATION FILED BY THE ASSESSE ALONG WITH ORDER O F THE TRIBUNAL, DATED 30/04/2019 IN ITA NO.2841/MUM/2011 AND OTHERS APPEA LS AND FIND THAT THE TRIBUNAL BY AN INADVERTENT ERROR FAILED TO ADJU DICATE GROUND NO.2, 9 AND 10 OF REVENUE APPEAL FOR AY 2005-06. THEREFORE, WE ARE OF THE CONSIDERED VIEW THAT THERE IS AN ERROR IN THE ORDER OF THE TRIBUNAL, INSOFAR AS, NOT ADJUDICATING GROUND NO.2, 9 AND 10 OF REVEN UE APPEAL FOR AY 2005-06. THEREFORE, WE RECALLED THE ORDER OF THE TR IBUNAL IN ITA.NO.2841/MUM/2011 FOR AY 2005-06, QUA GROUND NO.2,9 AND 10 OF REVENUE APPEALS. THE OTHER GROUNDS ADJUDICATED BY T HE TRIBUNAL FOR AY 2005-06 AND OTHER APPEAL DISPOSED FOR AY 2006-07 AN D 2007-08 BECOME FINAL. 4. IN THE RESULT, MISCELLANEOUS APPLICATION FILED B Y THE REVENUE IS ALLOWED IN TERMS OF OUR OBSERVATIONS GIVEN HEREINAB OVE. ORDER PRONOUNCED IN THE OPEN COURT ON 20 .01.2020 SD/- SD/- RAVISH SOOD G MANJUNATHA JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DT : 20 .01.2020 4 MA.NO.571/MUM/2019 THIRUMALESH, SR.PS COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//