The ACIT, Circle-4(1), Visakhapatnam V. M/s Nagavali Solvent Oils (P) Ltd., Srikakulam

MA 66/VIZ/2009

• Counselvise Citation: [2010] 123 COUNSELVISE.COM (IT) 4541 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-03-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 05-02-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 26-11-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G S S GOPINATH
• Keywords: Bad and doubtful debts; Tax effect

Judgement Text

PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER MA NO.66/VIZAG/2009 (ARISING OUT OF ITA NO.263/VIZAG/2007) ASSESSMENT YEAR: 2004-05 ACIT, CENTRAL CIRCLE 4(1), VISAKHAPATNAM VS. NAGAVALI SOLVENT OILS (P) LTD., SRIKAKULAM (APPELLANT) (RESPONDENT) PAN NO: AACCS 4008 F APPELLANT BY: SHRI G.S.S. GOPINATH, CIT (DR) RESPONDENT BY: SHRI G.V.N. HARI, CA ORDER PER SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER: THIS MISCELLANEOUS APPLICATION IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE TRIBUNAL IN ITA NO.263/VIZAG/2007 WITH THE SUBMISSION THAT THE TRIBUNAL HAS DISMISSED THE APPEAL OF THE REVENU E ON PRESUMPTION THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS BELOW RS. 2.00 LAKHS WHEREAS THE FACTS ARE OTHERWISE. THE LD COUNSEL FOR THE ASSESSE E DISPUTED THESE FACTS AND INVITED OUR ATTENTION TO THE ADDITIONS MADE BY THE ASSESSING OFFICER IN THE ASSESSMENT ORDER WITH THE SUBMISSIONS THAT THE ORDER OF THE CIT WAS CHALLENGED ONLY WITH RESPECT OF 3 ADDITIONS, VIZ: I) DISALLOWANCE OF BAD DEBTS OF RS. 91,563.00 II) DISALLOWANCE U/S 40(A)3 OF RS.1,02,244.00 III) DISALLOWANCE TOWARDS EXPENDITURE CAPITALIZED RS.2, 26,625.00 TOTAL DISALLOWANCE COMES TO RS.4,20,432.0 0 AS SUCH THE TAX EFFECT IN THIS APPEAL IS BELOW RS.2 .00 LAKHS. PAGE 2 OF 2 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y PERUSED THESE ADDITIONS MADE IN THE ASSESSMENT ORDER AND WE FIND THE TOTAL DISALLOWANCE AGAINST WHICH APPEAL IS MADE IS RS.4,20,432.00. AS SUCH THE TAX EFFECT IN THIS APPEAL IS BELOW RS.2.00 LAKHS. WE, THEREFORE, DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE TRIBUNAL DISMISSING THE APPEAL FOLLOWING THE JUDGMENT OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS . A. RAJENDRA PRASAD (299 ITR 227). WE ACCORDINGLY DISMISS THE APPEAL. 3. IN THE RESULT THE MISCELLANEOUS APPLICATION OF TH E REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 23-3-2010. SD/- SD/- (B R BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PVV/SPS VISAKHAPATNAM, DATE: 23 RD MARCH, 2010. COPY TO 1 THE ACIT, CENTRAL CIRCLE - 4(1), VISAKHAPATNAM 2 M/S NAGAVALI SOLVENT OILS (P) LTD., PO BOX NO;36, NATIONAL HIGHWAY, KESAVARAOPETA, CTCHERLA MANDAL, SRIKAKULAM 3 THE CIT VISAKHAPATNAM 4 THE CIT(A), VISAKHAPATNAM 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM