DCIT 3(2), V. IDBI TRUSTEESHIP SERVICES LTD,

MA 680/MUM/2012

• Counselvise Citation: [2013] 124 COUNSELVISE.COM (IT) 0308 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-04-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2005-2006
• Appeal Filed On: 06-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAIN KUMAR
• Keywords: Rule of consistency; Bad and doubtful debts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH, I MUMBAI BEFORE SHRI RAJENDRA SINGH, ACCOUNTANT MEMBER AND SHRI VIVEK VARMA, JUDICIAL MEM BER MA NO: 680/MUM/2012 ARISING OUT OF : ITA NO.4544/MUM/2009 ASSESSMENT YEAR : 2005-06 DY. COMMISSIONER OF INCOME TAX -3(2); ROOM NO.608, 6 TH FLOOR; AAYAKAR BHAVAN MUMBAI-400 020. M/S. IDBI TRUSTEESHIP SERVICES LTD. 10 TH FLOOR, NARIMAN BHAVAN, NARIMAN POINT MUMBAI-400 021. PAN NO: AAACI 8912 J (APPLICANT) VS. (RESPONDENT) APPLICANT BY : SHRI NAIN KUMAR RESPONDENT BY : NONE DATE OF HEARING : 05.04.2013 DATE OF PRONOUNCEMENT : 05.04.2013 ORDER PER RAJENDRA SINGH (AM). THIS MISCELLANEOUS APPLICATION HAS BEEN FILED BY TH E REVENUE FOR RECALL OF THE ORDER DATED 27.4.2012 OF THE TRIBUNAL IN ITA NO.4544/M/09 ON THE GROUND OF SOME APPARENT MISTAKES. 2. AT THE TIME OF HEARING OF THE MISCELLANEOUS APPL ICATION NO ONE APPEARED ON BEHALF OF THE ASSESSEE. IN FACT THE NOT ICE OF HEARING SENT BY RPAD HAS BEEN RETURNED UNSERVED ON THE GROUND THAT THE ASSESSEE HAD LEFT. THE NOTICE HAD BEEN SENT AT THE ADDRESS GIVEN BY TH E ASSESSEE IN THE MEMORANDUM OF APPEAL AND NO CHANGE OF ADDRESS HAS B EEN COMMUNICATED TO THE TRIBUNAL. WE, THEREFORE, PROCEED TO DECIDE THE MISCELLANEOUS APPLICATION ON THE BASIS OF MATERIAL AVAILABLE ON RECORD AND AF TER HEARING THE LD. DR WHO MA NO.680/M/12 ARISING OU T OF ITA NO.4544/M/09 A.Y: 05-06 2 SUBMITTED THAT THE APPEAL WAS DISMISSED FOR WANT OF COD AND SINCE NOW COD IS NOT REQUIRED IN VIEW OF THE JUDGMENT OF HON'BLE SUPREME COURT IN THE CASE OF ELECTRONIC CORPORATION OF INDIA LTD. THE ORDER M AY BE RECALLED. 3. WE HAVE PERUSED THE RECORDS AND CONSIDERED THE M ATTER CAREFULLY. WE FIND THAT THE TRIBUNAL IN THE ORDER DATED 27.4.2012 HAD NOT DISMISSED THE APPEAL OF THE REVENUE FOR WANT OF COD APPROVAL. THE TRIBUNAL HAD DECIDED THE APPEAL ON MERIT AND HAD DISMISSED THE SAME. THE DISPUTE RAISED IN THE APPEAL WAS REGARDING CLAIM OF BAD DEBT AND TAXABILI TY OF ADDITIONAL INCOME DECLARED BY THE ASSESSEE IN VIEW OF NEW ACCOUNTING METHOD FOLLOWED SINCE 2004-05. THE ASSESSEE SINCE 2004-05 WAS WRITING OFF DEBTS IN RESPECT OF INCOME IN WHICH THERE WAS NO RECOVERY FOR 7 MONTHS AND IN RESPECT OF BAD DEBTS CLAIM, IF ANY INCOME WAS RECEIVED IN SUBSEQUE NT YEAR THE SAME WAS OFFERED AS INCOME. THE TRIBUNAL NOTED THAT THE NEW METHOD ADOPTED BY THE ASSESSEE IN ASSESSMENT YEAR 2004-05 WAS ACCEPTED BY CIT(A) AND THE ORDER OF CIT(A) HAD BECOME FINAL. FURTHER, IN ASSESSMENT YEARS 2008-09 AND 2009- 10, THE AO HAD HIMSELF ACCEPTED NEW METHOD BEING FO LLOWED BY THE ASSESSEE. THEREFORE, FOLLOWING THE PRINCIPLE OF CONSISTENCY T HE TRIBUNAL UPHELD THE ORDER OF CIT(A) IN ACCEPTING THE NEW METHOD FOLLOWED. NO APPARENT MISTAKE HAS BEEN POINTED OUT IN THE ORDER OF THE TRIBUNAL AND M ISTAKE POINTED OUT IS ONLY ON THE GROUND OF COD APPROVAL WHICH IS NOT CORRECT AS THE APPEAL OF THE REVENUE WAS NOT DISMISSED FOR WANT OF COD APPROVAL. WE, THEREFORE, FIND NO MERIT IN THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE AND THE SAME IS, THEREFORE, REJECTED. MA NO.680/M/12 ARISING OU T OF ITA NO.4544/M/09 A.Y: 05-06 3 4. IN THE RESULT, THE MISCELLANEOUS APPLICATION OF THE REVENUE STANDS REJECTED. ORDER PRONOUNCED IN THE OPEN COURT ON 5.4.2013. SD/- SD/- (VIVEK VARMA) ( RAJENDRA SINGH ) JUDICIAL MEMBER ACCO UNTANT MEMBER MUMBAI, DATED: 5.4. 2013. JV. COPY TO: THE APPLICANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR BENCH TRUE COPY BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.