KIRTI PRAMOD TULSYAN PROP. M/S. VIDHI INVESTMENT, MUMBAI v. ITO 4(2)(1), MUMBAI

ITA 2748/MUM/2009 | 2005-2006
Pronouncement Date: 23-03-2011 | Result: Allowed

Appeal Details

RSA Number 274819914 RSA 2009
Assessee PAN ABTPT7688K
Bench Mumbai
Appeal Number ITA 2748/MUM/2009
Duration Of Justice 1 year(s) 10 month(s) 24 day(s)
Appellant KIRTI PRAMOD TULSYAN PROP. M/S. VIDHI INVESTMENT, MUMBAI
Respondent ITO 4(2)(1), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 23-03-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 23-03-2011
Date Of Final Hearing 30-12-2010
Next Hearing Date 30-12-2010
Assessment Year 2005-2006
Appeal Filed On 29-04-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: MUMBAI BEFORE SHRI J. SUDHAKAR REDDY ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR JUDICIAL MEMBER ITA NO.2748/MUM/2009 (ASSESSMENT YEAR: 2005-06) SMT KIRTI PRAMOD TULSYAN PROP MS VIDHI INVESTMENT 107 DAMJI SHAMJI UDYOG BHAVAN VEERA DESAI ROAD ANDHERI (W) MUMBAI -400 058 ASSESSEE VS INCOME-TAX OFFICER WARD4(2)(1) AAYAKAR BHAVAN MUMBAI- 400 020 REVENUE PAN: ABTPT 7688 K ASSESSEE BY: SHRI H.S. RAHEJA REVENUE BY: SHRI SHRAVAN KUMAR O R D E R PER R.S. PADVEKAR JM IN THIS APPEAL THE ASSESSEE HAS CHALLENGED THE IMPU GNED ORDER OF THE LD. CIT (A)-4 MUMBAI DATED 5.3.2009 FOR THE A.Y . 2005-06. THE ASSESSEE HAS TAKEN THE FOLLOWING GROUNDS IN APPEAL: - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN CONFI RMING DISALLOWANCE OF BAD DEBTS / SUNDRY BALANCES WRITTEN OFF ITA 2748/M/2009 SMT KIRTI PRAMOD TULSYAN 2 AMOUNTING TO ` 7 03 418/- OUT OF TOTAL CLAIM OF ` 7 42 152/- DISALLOWED BY THE ASSESSING OFFICER. THE APPELLANT SUBMITS THAT THE APPELLANTS CLAIM OF BAD DEBTS / SUNDRY BA LANCES WRITTEN OFF IS AS PER THE PROVISIONS OF INCOME TAX ACT 1961 AND HENCE THE SAME OUGHT TO BE ALLOWED FULLY. 2. WITHOUT PREJUDICE TO THE ABOVE GROUND THE LEARN ED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN NOT A LLOWING THE AMOUNT OF ` 7 03 418/- WHICH WAS RECOVERED FROM THE CLIENTS AS A TRADING LOSS. THE APPELLANT SUBMITS T HAT THE NON- RECOVERY OF MONEY FROM THE CLIENTS IS A TRADING LOS S AND THE SAME OUGHT TO BE ALLOWED. 2. WE HAVE HEARD THE PARTIES. THE LD. COUNSEL SUBM ITS THAT THE ISSUE OF BAD DEBTS IN CASE OF SHARE BROKER IS COVER ED BY THE DECISION OF THE HONBLE HIGH COURT OF DELHI IN THE CASE OF CIT VS. D.B. (INDIA) SECURITIES LTD. 318 ITR 26 AS WELL AS BY THE DECISI ON OF THE SPECIAL BENCH OF THE ITAT MUMBAI IN THE CASE OF SHREYAS S. MORAKH IA 5 ITR TRIB 1(MUM) (SB). WE HAVE ALSO HEARD THE LD. D.R. THE ASSESSEE-COMPANY ENGAGED IN THE BUSINESS OF SHARE BROKING. THE ASSE SSEE DEBITED ` 7 42 152/- TOWARDS THE BAD DEBTS IN THE PROFIT & LO SS ACCOUNT. THE A.O. WAS OF THE OPINION THAT CONDITION OF SECTION 36(2) IS NOT FULFILLED AND HENCE THE ASSESSEE-COMPANY THE SHARE BROKER AND TH E PURCHASE WERE MADE ON BEHALF OF CLIENT OR THAT MEMBER-BROKERS AND HENCE THE CLAIM CANNOT BE ALLOWED. NOW THE ISSUE IS COVERED IN FAV OUR OF THE ASSESSEE BY THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT O F DELHI IN THE CASE OF D.B. (INDIA) SECURITIES LTD. (SUPRA) AS WELL AS BY THE DECISION OF THE SPECIAL BENCH IN THE CASE OF SHREYAS S. MORAKHIA (S UPRA). WE THEREFORE RESPECTFULLY FOLLOWING THE PRINCIPLES LAID DOWN IN THE ABOVE TWO DECISIONS ALLOW THE GROUND TAKEN BY THE ASSESSEE AND DELETE T HE ADDITION. ITA 2748/M/2009 SMT KIRTI PRAMOD TULSYAN 3 3. IN THE RESULT ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY O F 23RD MARCH 2011. SD/- SD/- ( J. SUDHAKAR REDDY ) ACCOUNTANT MEMBER ( R.S. PADVEKAR ) JUDICIAL MEMBER MUMBAI DATE: 23RD MARCH 2011 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) IV MUMBAI. 4) THE CIT -4 MUMBAI. 5) THE D.R. A BENCH MUMBAI. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR *CHAVAN I.T.A.T. MUMBAI ITA 2748/M/2009 SMT KIRTI PRAMOD TULSYAN 4 SR.N. EPISODE OF AN ORDER DATE INITIALS CONCERNED 1 DRAFT DICTATED ON 16.03.2011 SR.PS 2 DRAFT PLACED BEFORE AUTHOR 17.03.2011 SR.PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 FILE SENT TO THE BENCH CLERK SR.PS/PS 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER