M/s. Neotech Engineers, Baroda v. The ACIT.,Circle-2(2),, Baroda

ITA 4090/AHD/2008 | 2004-2005
Pronouncement Date: 18-03-2011 | Result: Allowed

Appeal Details

RSA Number 409020514 RSA 2008
Assessee PAN AABFN3258J
Bench Ahmedabad
Appeal Number ITA 4090/AHD/2008
Duration Of Justice 2 year(s) 2 month(s) 30 day(s)
Appellant M/s. Neotech Engineers, Baroda
Respondent The ACIT.,Circle-2(2),, Baroda
Appeal Type Income Tax Appeal
Pronouncement Date 18-03-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted D
Tribunal Order Date 18-03-2011
Date Of Final Hearing 10-03-2011
Next Hearing Date 10-03-2011
Assessment Year 2004-2005
Appeal Filed On 19-12-2008
Judgment Text
ITA NO.409 0/AHD/2008 ASSESSMENT YEAR 2004-05 1 IN THE INCOME_TAX APPELLATE TRIBUNAL D BENCH AH MEDABAD BEFORE SHRI G.D. AGARWAL V.P. & SHRI MUKUL KR SHRAWAT. I.T.A. NO. 4090/AHD/2008. (ASSESSMENT YEAR: 2004-05) M/S. NEOTECH ENGINEERS 300/B GIDC RAMANGAMDI POR DIST: BARODA-391 243. (APPELLANT) VS. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2(2) AAYAKAFR BHAVAN NEAR RACE COURSE CIRCLE BARODA. (RESPONDENT) PAN: AABFN 3258 J APPELLANT BY : SHRI M. J. SHAH. RESPONDENT BY : SHRI G. S. SOURYAWANSI D.R. ( (( ( )/ )/)/ )/ ORDER PER: SHRI MUKUL KUMAR SHRAWAT J.M. THIS IS AN APPEAL AT THE BEHEST OF THE ASSESSEE WH ICH HAS EMANATED FROM THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEAL S) DATED 8-9-2008. THE SUBSTANTATIVE GROUND NO.1 IS REPRODUCED BELOW:- ON THE FACTS AND CIRCUMSTANCES OF YOUR APPELLANTS CASE AND IN LAW THE LD. C.I.T. (A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.4 56 745/- CLAIMED AS BAD DEBTS ON THE GROUND THAT YOUR APPELLANT HAS NOT SUBMITTED ANY EVIDENCE TO PROVE THAT THE DEBT HAD BECOME BAD. 2. THE FACTS IN BRIEF AS EMERGED FROM THE ASSESSMEN T ORDER PASSED U/S. 143(3) DATED 23-10-2006 WERE THAT AN AMOUNT OF RS.4 56 735/- WAS WRITTEN OFF AND CLAIMED AS BAD DEBT FOR THE YEAR UNDER CONSIDER ATION. THOSE SUNDRY BALANCES WERE IN RESPECT OF THREE PARTIES AND THE A SSESSING OFFICER HAS HELD THAT THE ASSESSEE HAS NOT ESTABKLISHED THAT THERE WAS AN Y RAY OF HOPE FOR THE ITA NO.409 0/AHD/2008 ASSESSMENT YEAR 2004-05 2 RECOVERY OF THE DEBT; THEREFORE DISALLOWED THE CLA IM. THE MATTER WAS CARRIED OUT BEFORE THE FIRST APPELLATE AUTHORITY WHO HAS AFFIRM ED THE ACTION OF THE ASSESSING OFFICER ON THE GROUND THAT THE DEBTS HAVE NOT BECOM E BAD ON OR NON RECOVERABLE THEREFORE NOT ALLOWABLE AS BAD DEBT FOR THE YEAR U NDER CONSIDERATION. 3. HAVING HEARD THE SUBMISSIONS OF BOTH THE SIDES ONCE IT WAS AN ADMITTED FACTUAL POSITION THAT THE OUTSTANDING BALANCE IN TH E ACCOUNTS OF THE SUNDRY DEBTORS WAS WRITTEN OFF IN THE BOOKS OF ACCOUNTS DU RING THE YEAR UNDER CONSIDERATION THEREFORE THE ISSUE NOW STOOD COVER ED BY A LATEST DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF TRF LTD. 323 ITR 397 WHEREIN IT HAS BEEN HELD AS UNDER:- AFTER THE AMENDMENT OF SECTION 36(1)(VII) OF THE INCOME TAX ACT 1961 WITH EFFECT FROM APRIL 1 1989 IN ORDER TO OBTAIN A DEDUCTION IN RELATION TO BAD DEBTS IT IS NOT NECESSARY FOR T HE ASSESSEE TO 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. RESPECTFULLY FOLLOWING THIS DECISION OF THE SUPREM E COURT THIS GROUND IS ALLOWED. 4. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN OPEN COURT ON 18 / 3 /2011. SD/- SD/- ( G. D. AGARWAL) (MUKUL KUMAR SHRAWAT) VICE PRESIDENT JU DICIAL MEMBER. AHMEDABAD. DATED: 18- 3 -2011. S.A.PATKI. COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. ITA NO.409 0/AHD/2008 ASSESSMENT YEAR 2004-05 3 3. THE CIT(APPEALS)- 4. THE CIT CONCERNED. 5. THE DR. ITAT AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT AHMEDA BAD. 1.DATE OF DICTATION 10-3-2011 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING 11-3- 2011 MEMBER.OTHER MEMBER. 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S -3-2011. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT -3-2011 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S -3 -2011 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK -3 -2011. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..