M/s. M.D.Industries., Nashik v. CIT-I,, Nashik

ITA 1182/PUN/2009 | 2004-2005
Pronouncement Date: 31-01-2011 | Result: Allowed

Appeal Details

RSA Number 118224514 RSA 2009
Assessee PAN AAEFM7391J
Bench Pune
Appeal Number ITA 1182/PUN/2009
Duration Of Justice 1 year(s) 4 month(s)
Appellant M/s. M.D.Industries., Nashik
Respondent CIT-I,, Nashik
Appeal Type Income Tax Appeal
Pronouncement Date 31-01-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 31-01-2011
Date Of Final Hearing 25-01-2011
Next Hearing Date 25-01-2011
Assessment Year 2004-2005
Appeal Filed On 30-09-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV JM AND SHRI G.S. PANNU AM I.T.A. NO. 1182/PN/2009: A.Y. 2004-05 M/S. M.D. INDUSTRIES F-82 MIDC AMBAD NASIK PAN AAEFM 7391 J APPELLANT VS. ADDL. CIT RANGE 1 NASIK RESPONDENT APPELLANT BY : SHRI DEVENDRA JAIN RESPONDENT BY: SHRI HARESHWAR SHARMA ORDER PER SHAILENDRA KUMAR YADAV JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CITI NASIK DATED 18-3-2009 PASSED U/S 263 OF THE ACT FOR A.Y. 2004-05 ON THE POINT OF DISALLOWAN CE OF BAD DEBTS OF RS. 4 01 621/- U/S 36(1)(VII) OF THE ACT. 2. THE ASSESSEE HAS CLAIMED BAD DEBTS OF RS. 4 01 6 21/- WHICH WAS ALLOWED BY THE ASSESSING OFFICER WHILE CO MPLETING THE ASSESSMENT ON 20-6-2006 ON A TOTAL INCOME OF RS. 1 02 63 731/-. HOWEVER DURING THE SCRUTINY T HE CIT NOTICED THAT THE ASSESSMENT ORDER WAS RENDERED ERRO NEOUS AND PREJUDICIAL TO THE INTEREST OF REVENUE ON THE G ROUND THAT THE BAD DEBTS OF RS. 4 01 621/- WAS ALLOWED WITHOUT EXAMINING THE DETAILS THEREOF. ACCORDINGLY THE CI T ENHANCED ITA NO. 1182/PN/09 M.D. INDUSTRIES A.Y. 2004-05 2 THE ASSESSMENT BY RS. 4 01 621/- AND DIRECTED THE A SSESSING OFFICER TO RAISE THE DEMAND. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE CIT WAS NOT JUSTIFIED IN DIRECTING THE DISALLOWANCE OF BAD DEBTS OF RS. 4 01 621/- U/S 36(1)(VII) OF THE ACT. 4. ON THE OTHER HAND THE LEARNED DR RELIED ON THE ORDER OF THE CIT PASSED U/S 263 OF THE ACT. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES. WE FIND THAT THE ISSUE RAISED IN THIS APPEAL STANDS COVERED BY THE JUDGMENT OF HONBLE SUPREME COURT IN THE CASE O F T.R.F. LTD. VS. CIT (2010) 230 CTR (SC) 14 WHEREIN IT HAS BEEN HELD AS UNDER: AFTER 1 ST APRIL 1989 IT IS NOT NECESSARY FOR THE ASSESSEE TO ESTABLISH THAT THE DEBT IN FACT HAS BECOME IRRECOVERABLE. IT IS ENOUGH IF THE BAD DEBT IS WRI TTEN OFF AS IRRECOVERABLE IN THE ACCOUNTS OF THE ASSESSEE HOWEVER IN THE PRESENT CASE THE A.O HAS NOT EXAMI NED WHETHER THE DEBT HAS IN FACT BEEN WRITTEN OFF IN ACCOUNTS OF THE ASSESSEE. THIS EXERCISE HAS NOT BEE N UNDERTAKEN BY THE A.O. HENCE THE MATTER IS REMITT ED TO THE A.O FOR DE NOVO CONSIDERATION OF THE ABOVE MENT IONED ASPECT ONLY AND THAT TOO ONLY TO THE EXTENT OF THE WRITE OFF. 6. SO RESPECTFULLY FOLLOWING THE AFORESAID JUDGMEN T OF HONBLE SUPREME COURT IN THE CASE OF T.R.F. LTD (SU PRA) WE FIND THAT THE CIT WAS NOT JUSTIFIED IN DIRECTING TH E ASSESSING OFFICER TO MAKE DISALLOWANCE OF BAD DEBTS CLAIMED B Y THE ITA NO. 1182/PN/09 M.D. INDUSTRIES A.Y. 2004-05 3 ASSESSEE. KEEPING IN VIEW THE JUDGMENT OF HONBLE SUPREME COURT IN THE CASE OF T.R.F. LTD. (SUPRA) WE HOLD T HAT THE ASSESSING OFFICER WAS JUSTIFIED IN ALLOWING THE CLA IM OF THE ASSESSEE. THE ORDER OF CIT IS ACCORDINGLY SET ASIDE AND QUASHED. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST JANUARY 2011. SD/- SD/- (G.S. PANNU) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE DATED THE 31 ST JANUARY 2011 ANKAM COPY FORWARDED TO: (1) ASSESSEE (2) DEPARTMENT (3) CIT I NASIK (5) THE D.R. A BENCH PUNE TRUE COPY BY ORDER ASSTT. REGISTRAR INCOME-TAX APPELLATE TRIBUNAL PUNE BENCHES PUNE