The ACIT, Circle-5,, Baroda v. Shri Parasmal V.Jain, Baroda

ITA 3/AHD/2009 | 2005-2006
Pronouncement Date: 18-01-2010 | Result: Dismissed

Appeal Details

RSA Number 320514 RSA 2009
Assessee PAN ABPPJ8381B
Bench Ahmedabad
Appeal Number ITA 3/AHD/2009
Duration Of Justice 1 year(s) 17 day(s)
Appellant The ACIT, Circle-5,, Baroda
Respondent Shri Parasmal V.Jain, Baroda
Appeal Type Income Tax Appeal
Pronouncement Date 18-01-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 18-01-2010
Date Of Final Hearing 18-01-2010
Next Hearing Date 18-01-2010
Assessment Year 2005-2006
Appeal Filed On 01-01-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI BHAVNESH SAINI JUDICIAL MEMBER AND SHRI A.N. PAHUJA ACCOUNTANT MEMBER DATE OF HEARING : 18/ 01 /2010 DRAFTED ON: 18/ 01/2010 ITA NO.03/AHD/2009 ASSESSMENT YEAR : 2005-06 THE ASST.CIT CIRCLE-5 BARODA VS. SHRI PARASMAL V. JAIN PROP. OF LAXMI METAL DISTRIBUTORS NARSINGH ESTATE YAMUNA MILL ROAD BARODA PAN/GIR NO. : ABPPJ 8381 B (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI C.K. MISHRA SR. D.R. RESPONDENT BY: -NONE- O R D E R PER BHAVNESH SAINI JUDICIAL MEMBER: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(APPEALS)-V BARODA DATED 15/10/2008 PAS SED FOR ASSESSMENT YEAR 2005-06 CHALLENGING THE DELETION OF ADDITION ON ACCOUNT OF BAD DEBTS IN A SUM OF RS.6 56 732/-. 2. IT WAS SUBMITTED BEFORE THE LEARNED CIT(APPEALS ) THAT ASSESSEE HAS CLAIMED BAD DEBTS IN RESPECT OF FIVE PARTIES; NAME LY ADITYA FORGE LTD. INDUSTRIAL PROFILE PRESTIGE METAL INDUSTRIES SHRE EJI BARRELS AND SOLAR EQUIPMENT PVT.LTD. IT WAS EXPLAINED THAT THE ABOVE DEBTORS HAVE NOT PAID THE AMOUNT SINCE FINANCIAL YEAR 2002-03 AND AS SUC H THESE DEBTS HAVE BECOME TIME-BARRED AND THERE ARE NO CHANCES OF RECO VERY. IT WAS ALSO ITA NO .03/AHD/2009 ACIT VS. SHRI PARASMAL V.JAIN ASST.YEAR 2005-06 - 2 - EXPLAINED THAT SEEKING REMEDY IN THE CIVIL COURT WO ULD HAVE PUT THE ASSESSEE TO ADDITIONAL COST THEREFORE ASSESSEE HA S TREATED THE AMOUNT AS BAD DEBT AND WRITTEN OFF IN THE BOOKS OF ACCOUNT. COPIES OF THE ACCOUNTS OF THE PARTIES WERE ALSO FURNISHED IN SUPPORT OF TH E SAME AND CIRCULAR OF THE CBDT NO.551 DATED 23/01/1990 WAS ALSO RELIED UP ON IN WHICH THE AMENDED PROVISIONS OF SECTION 36(1)(VII) OF THE I.T . ACT 1961 HAS BEEN EXPLAINED TO PROVIDE THAT THE CLAIM FOR THE BAD DEB T WILL BE ALLOWED IN THE YEAR IN WHICH SUCH A BAD DEBT HAS BEEN WRITTEN OFF AS IRRECOVERABLE IN THE AMOUNT OF THE ASSESSEE AND THERE IS NO NECESSITY TO PROVE THAT THE DEBT HAD BECOME BAD. THE LEARNED CIT(APPEALS) ACCEPTED THE CONTENTION OF THE ASSESSEE BECAUSE THE CLAIM OF THE ASSESSEE WAS AS P ER THE AMENDED PROVISIONS OF SECTION 36(1)(VII) OF THE I.T. ACT 1 961 AND ADDITION WAS ACCORDINGLY DELETED. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE RELIED U PON THE ORDER OF THE ASSESSING OFFICER. 4. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE NOTIFYING THE DATE OF HEARING. 5. CONSIDERING THE ABOVE AND THE GROUND OF APPEAL WE FIND THAT TAX EFFECT IS BELOW RS.2 LACS IN THIS DEPARTMENTAL APPE AL. AS PER DEPARTMENTAL INSTRUCTIONS DEPARTMENTAL APPEAL COUL D BE FILED BEFORE THE TRIBUNAL IF THE TAX EFFECT EXCEEDS RS.2 LACS. TH EREFORE DEPARTMENTAL APPEAL WOULD NOT BE MAINTAINABLE AND EVEN NO QUESTI ON OF LAW ARISES IN THE ITA NO .03/AHD/2009 ACIT VS. SHRI PARASMAL V.JAIN ASST.YEAR 2005-06 - 3 - ABOVE DEPARTMENTAL APPEAL. WE MAY ALSO ADD HERE T HAT THE CLAIM OF THE ASSESSEE WAS AS PER SECTION 36(1)(VII) OF THE I.T. ACT 1961 BECAUSE THE ASSESSEE HAS WRITTEN OFF THE BAD DEBTS AS IRRECOVER ABLE IN THE ACCOUNTS FOR THE PREVIOUS YEAR AS IS NOTED BY THE LEARNED CIT(AP PEALS). 6. CONSIDERING THE ABOVE WE DO NOT FIND ANY MERIT IN THE DEPARTMENTAL APPEAL THE SAME IS ACCORDINGLY DISMIS SED. 7. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 18 TH JANUARY-2010 SD/- SD/- ( A.N. PAHUJA ) ( BHAVNESH SAINI ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 18/ 01 /2010 T.C. NAIR COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT. 2. TH E RESPONDENT 3. THE CIT CONCERNED. 4. THE LD. CIT(APPEALS)-V BARODA 5. THE DR AHMEDABAD BENCH. 6. THE GUARD FILE. BY ORDER //TRUE COPY// (DY./ASSTT.REGISTRAR) ITAT AHMEDABAD