SMALL INDUSRIES DEVELOPMENT BANK OF INDIA, V. ADDL CIT CIR 3(3),

MA 807/MUM/2009

• Counselvise Citation: [2010] 123 COUNSELVISE.COM (IT) 5022 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 2 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-09-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2002-2003
• Appeal Filed On: 01-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JI TENDRA YADAV
• Keywords: Bad and doubtful debts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'A' BENCH, MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER MA NO. 807/MUM/2009 (ARISING OUT OF ITA NO. 3407/MUM/2006) (ASSESSMENT YEAR: 2002-03) SMALL INDUSTRIES DEVELOPMENT ADDL. CIT, RANGE 3(3) BANK OF INDIA, SME DEVELOPMENT AAYAKAR BHAVAN, M.K. ROAD CENTRE, C-11, G-BLOCK, BKC VS. MUMBAI 400020 BANDRA (E), MUMBAI 400051 PAN - AABCS 3480 N APPELLANT RESPONDENT APPELLANT BY: SHRI SHAILESH S. SHAH/ SHRI SUNIL NAHTA RESPONDENT BY: SHRI JITENDRA YADAV O R D E R PER B. RAMAKOTAIAH, A.M. BY THIS MISCELLANEOUS APPLICATION THE ASSESSEE WANT S CORRECTIONS IN THE FINDING GIVEN IN PARA 19 OF THE ORDER IN ITA NO. 34 07/MUM/2006 DATED 15 TH JULY 2009 WITH REFERENCE TO THE ISSUE OF ADDITIONAL GROUND, WHICH WAS CONSIDERED THE DECIDED AS UNDER: - 19. RELATED TO THE ABOVE, IS THE ISSUE OF ADDITION AL GROUND WHICH IS TO BE CONSIDERED. THE ASSESSEE CONTENDS THAT THE A. O. HAS DEDUCTED THE AMOUNT WRONGLY AND FURTHER AMOUNT OF RS.17.72 CRORE S HAS TO BE CONSIDERED AS FURTHER ALLOWANCE. THE ISSUE OF ADDIT IONAL GROUND CANNOT BE CONSIDERED AS THE A.O. HAS DISALLOWED ONLY AN AM OUNT OF RS.84.71 CRORES AND NOT 102.43 CRORES. CONSEQUENTLY THERE IS NO QUESTION OF FURTHER ALLOWANCE OF RS.17.71 CRORES WHICH STANDS A LLOWED IN THE COMPUTATION BY THE A.O. CONSEQUENTLY THERE IS NO NE ED TO CONSIDER THE ADDITIONAL GROUND ON THE FACTS OF THE CASE. THE ASS ESSEE IS ALSO A PUBLIC SECTOR UNDERTAKING SO, PERMISSION OF THE COD IS ALS O REQUIRED FOR RAISING THE ADDITIONAL GROUND. THERE IS NO SUCH PERMISSION MADE AVAILABLE TO US ON THIS. WE, ACCORDINGLY REJECT THE ADDITIONAL GROU ND RAISED. 2. THE ASSESSEE IS NOW BEFORE US SUBMITTING THAT THE S TATEMENT CONSEQUENTLY THERE IS NO QUESTION OF FURTHER ALLOW ANCE OF RS.17.71 CRORES WHICH STANDS ALLOWED IN THE COMPUTATION BY THE A.O. WAS NOT CORRECT AS THE ASSESSEE HAS NOT CLAIMED THIS AMOUNT, HENCE, QU ESTION OF ALLOWANCE BY MA NO. 807/MUM/2009 SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA 2 THE A.O. DOES NOT ARISE. TO THAT EXTENT THE FINDING OF THE ITAT REQUIRE MODIFICATION. 3. WE HAVE CONSIDERED THE ABOVE. THE ASSESSEE SUBMITS THAT THE TOTAL CLAIM OF BAD DEBTS WRITTEN OFF IN THE BOOKS OF ACCO UNT WAS TO THE EXTENT OF ` 102.43 CRORES BUT AN AMOUNT OF `84 .71 CRORES WAS ONLY CLAIMED WHICH WAS DISALLOWED BY THE A.O. ACCORDINGLY THE AMOUNT OF ` 17.72 CRORES, WHICH WAS NOT CLAIMED WAS CLAIMED IN THE ADDITIONAL GROUND. A FTER EXAMINING THE RECORD THE ABOVE SENTENCE STANDS MODIFIED AS UNDER: - SINCE THIS CLAIM WAS NOT MADE BEFORE THE A.O. AND ALSO SINCE IT REQUIRE FURTHER EXAMINATION OF FACTS, ALLOWING THE ABOVE AMOUNT AT PRESENT DOES NOT ARISE. ORDER TO THAT EXTENT STANDS MODIFIED 4. CONSEQUENTLY PARA 19 SHOULD BE READ AS UNDER: - 19. RELATED TO THE ABOVE, IS THE ISSUE OF ADDITIONA L GROUND WHICH IS TO BE CONSIDERED. THE ASSESSEE CONTENDS THAT THE A.O. HAS DEDUCTED THE AMOUNT WRONGLY AND FURTHER AMOUNT OF RS.17.72 CRORES HAS T O BE CONSIDERED AS FURTHER ALLOWANCE. THE ISSUE OF ADDITIONAL GROUND C ANNOT BE CONSIDERED AS THE A.O. HAS DISALLOWED ONLY AN AMOUNT OF RS.84.71 CRORES AND NOT 102.43 CRORES. SINCE THIS CLAIM WAS NOT MADE BEFORE THE A. O. AND ALSO SINCE IT REQUIRE FURTHER EXAMINATION OF FACTS, ALLOWING THE ABOVE AMOUNT AT PRESENT DOES NOT ARISE. CONSEQUENTLY THERE IS NO NEED TO CONSIDER THE ADDI TIONAL GROUND ON THE FACTS OF THE CASE. THE ASSESSEE IS AL SO A PUBLIC SECTOR UNDERTAKING SO, PERMISSION OF THE COD IS ALSO REQUI RED FOR RAISING THE ADDITIONAL GROUND. THERE IS NO SUCH PERMISSION MADE AVAILABLE TO US ON THIS. WE, ACCORDINGLY REJECT THE ADDITIONAL GROUND RAISED. 5. IN THE RESULT, MA IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 3 RD SEPTEMBER 2010. SD/- SD/- (D. MANMOHAN) (B. RAMAKOTAIAH) VICE PRESIDENT ACCOUNTANT MEMBER MUMBAI, DATED: 3 RD SEPTEMBER 2010 MA NO. 807/MUM/2009 SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA 3 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) XXXII, MUMBAI 4. THE CIT III, MUMBAI CITY 5. THE DR, A BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.