ITO, Wd 2(3), Jalgaon, Jalgaon v. Maharashtra Pulse Mills, Jalgaon

ITA 1314/PUN/2009 | 2006-2007
Pronouncement Date: 27-07-2011 | Result: Dismissed

Appeal Details

RSA Number 131424514 RSA 2009
Assessee PAN AACFM1869K
Bench Pune
Appeal Number ITA 1314/PUN/2009
Duration Of Justice 1 year(s) 8 month(s) 11 day(s)
Appellant ITO, Wd 2(3), Jalgaon, Jalgaon
Respondent Maharashtra Pulse Mills, Jalgaon
Appeal Type Income Tax Appeal
Pronouncement Date 27-07-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 27-07-2011
Date Of Final Hearing 12-07-2011
Next Hearing Date 12-07-2011
Assessment Year 2006-2007
Appeal Filed On 16-11-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV JUDICIAL MEMBER AND SHRI G.S. PANNU ACCOUNTANT MEMBER I.T.A. NO. 1314/PN/2010 : A.Y. 2006-07 I.T.O. WARD 2(3) JALGAON APPELLANT VS. MAHARASHTRA PULSE MILLS C/O RASHMIKUMAR CHETANKUMAR & CO. POLAN PETH DANA BAZAR JALGAON PAN AACFM 1869 K RESPONDENT APPELLANT BY: SHRI ANN KAPTHUAMA RESPONDENT BY: SHRI PRAMOD SHINGTE ORDER PER SHAILENDRA KUMAR YADAV JM THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF THE CIT (A)-II NASIK DATED 17-8-2009 FOR THE ASSESS MENT YEAR 2006- 07 ON THE GROUND THAT THE CIT(A) ERRED IN DELETING THE ADDITION MADE TO THE TUNE OF RS. 12 92 871/- ON ACCOUNT OF D ISALLOWANCE OF BAD DEBTS DEBITED IN THE BOOKS OF ACCOUNTS. 2. THE ASSESSEE IS A COMPANY ENGAGED IN THE BUSINES S OF MANUFACTURING AND TRADING IN ALL KINDS OF PULSES AN D BHUSHI AS WELL AS COMMODITIES TRADING. FOR THE YEAR UNDER CONSIDER ATION THE ASSESSEE HAS CLAIMED BAD DEBTS OF RS. 13 00 673/- ON ACCOUNT OF PROVISION FOR BAD DEBTS WHICH WAS DISALLOWED BY THE ASSESSING OFFICER. ON APPEAL THE CIT(A) ALLOWED THE CLAIM O F THE ASSESSEE TO 2 ITA NO. 1314/PN/2009 MAHARASHTRA PULSE MILLS A.Y. 2006-07 THE EXTENT OF RS. 12 92 871/- AFTER DISALLOWING A S UM OF RS. 7 802/- ON ACCOUNT OF BAD DEBTS FOR THE DETAILED DISCUSSION S MADE IN THE IMPUGNED ORDER. THE SAME HAS BEEN OPPOSED BY THE R EVENUE BEFORE US. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD. IT IS THE CLAIM OF THE ASSESSEE THAT THE D EBTS WERE BUSINESS DEBTS ON ACCOUNT OF THE SALE TRANSACTION AND THE SA ME WERE EXAMINED BY THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS. IT WAS ALSO SUBMITTED THAT THE PROVIS IONS OF SECTION 40A(2)(A) AND 40A(2)(B) OF THE ACT ARE NOT ATTRACTE D IN RELATION TO THE BAD DEBTS AS THE SAID PROVISIONS ARE APPLICABLE ONLY WHEN CERTAIN EXPENSES AND PAYMENTS WERE MADE UNDER CERTA IN CIRCUMSTANCES. THE CIT(A) OBSERVED THAT THE DEBTS HAVE ARISEN ON ACCOUNT OF BUSINESS TRANSACTIONS AND THE SAME WERE PROPERLY WRITTEN OFF IN THE BOOKS OF ACCOUNTS AND ALLOWED TH E CLAIM OF THE ASSESSEE TO THE EXTENT OF RS. 12 92 871/-. IN ANY CASE WE FIND THAT THE ISSUE RAISED IN THIS APPEAL STANDS COVERED IN F AVOUR OF THE ASSESSEE BY THE JUDGMENT OF HONBLE SUPREME COURT I N THE CASE OF T.R.F. LTD. VS. CIT (2010) 323 ITR 397 (SC) WHEREIN IT HAS BEEN HELD AS UNDER: AFTER 1 ST APRIL 1989 IT IS NOT NECESSARY FOR THE ASSESSEE T O ESTABLISH THAT THE DEBT IN FACT HAS BECOME IRRECO VERABLE. IT IS ENOUGH IF THE BAD DEBT IS WRITTEN OFF AS IRRECOVERA BLE IN THE ACCOUNTS OF THE ASSESSEE. 4. SO RESPECTFULLY FOLLOWING THE AFORESAID JUDGMEN T OF HONBLE SUPREME COURT IN THE CASE OF T.R.F. LTD (SUPRA) WE FIND THAT THE 3 ITA NO. 1314/PN/2009 MAHARASHTRA PULSE MILLS A.Y. 2006-07 CIT(A) WAS JUSTIFIED IN DIRECTING THE ASSESSING OFF ICER TO ALLOW THE CLAIM OF BAD DEBTS. 5. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 27 TH JULY 2011 SD/- SD/- (G.S. PANNU) ACCOUNTANT MEMBER (SHAILENDRA KUMAR YADAV JUDICIAL MEMBER PUNE DATED THE 27 TH JULY 2011 ANKAM COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A)- II NASIK 4. THE CIT II NASIK 5. THE D.R B BENCH PUNE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL