SOVERIGN TECH ENGINEERING SERVICES P. LTD, MUMBAI v. ITO 10(2)(2), MUMBAI

ITA 4778/MUM/2013 | 2009-2010
Pronouncement Date: 29-04-2015 | Result: Allowed

Appeal Details

RSA Number 477819914 RSA 2013
Assessee PAN AAFCS7074Q
Bench Mumbai
Appeal Number ITA 4778/MUM/2013
Duration Of Justice 1 year(s) 10 month(s) 8 day(s)
Appellant SOVERIGN TECH ENGINEERING SERVICES P. LTD, MUMBAI
Respondent ITO 10(2)(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 29-04-2015
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted E
Tribunal Order Date 29-04-2015
Date Of Final Hearing 20-04-2015
Next Hearing Date 20-04-2015
Assessment Year 2009-2010
Appeal Filed On 20-06-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH MUMBAI BEFORE S/SHRI B.R.BASKARAN (AM) AND AMIT SHUKLA (JM) . . ./ I.T.A. NO. 4778 / MUM/20 13 ( / ASSESSMENT YEAR : 2009 - 10 ) SOVEREIGN TECH ENGINEERING SERVICES PVT.LTD. 14 MAHINDEDR CHAMBERS W . T . PATIL MARG OPPOSITE DUKES FACTORY CHEMBUR MUMBAI - 400071 / VS. INCOME TAX OFFICER WARD 10(2)(2) MUMBAI. ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN/GIR NO. : AAFCS7074Q / A PPELLANT BY SHRI ANIL SATHE / RE SPONDENT BY SHRI SMT. N V NADKARNI / DATE OF HEARING : 21. 4. 201 5 / DATE OF PRONOUNCEMENT : 29. 4 . 201 5 / O R D E R PER B.R. BASKARAN (AM) THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 09 - 04 - 2013 PASSED BY LD . CIT(A) - 22 M UMBAI AND IT RELATES TO THE ASSESSMENT YEAR 2009 - 10. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LD . CIT(A) IN CONFIRMING THE ADDITION OF RS.3 33 287/ - MADE BY THE AO U/S 41(1) OF THE INCOME TAX ACT 1961 (THE ACT ) . 2. WE HEARD THE PARTIES AND PERUSED THE RECORDS. ONLY ISSUE CONTESTED IN THIS APPEAL IS WHETHER THE LD.CIT(A) WAS JUSTIFIED IN CONFIRMING THE ASSESSMENT OF RS.3 33 287/ - MADE U/S 41(1) OF THE ACT. FROM THE TAX AUDIT REPORT THE AO NOTICED THAT THE TAX AUDITOR HAS REPORTED THAT A SUM ITA NO. 4778 / MUM/201 3 2 OF RS.3 3 3 287/ - BEING SUNDRY CREDITORS BALANCE WRITTEN OFF BY THE ASSESSEE IS CHARGEABLE TO TAX U/S 41(1) OF THE ACT. SINCE THE PROFIT AND LOSS ACCOUNT DID NOT DISCLOSE THE ABOVE SAID ITEM SEPARATELY THE ASSESSING OFFICER ASSESSED THE SAME AS INCOME OF THE ASS ESSEE WHICH WAS ALSO CONFIRMED BY LD CIT(A) . 3 . BEFORE US THE LD.AR SUBMITTED THA T THE ASSESSEE HAD ALREADY OFFERED THE ABOVE SAID AMOUNT IN THE PROFIT AND LOSS ACCOUNT. HE SUBMITTED THAT THE ASSESSEE INSTEAD OF SHOWING SEPARATELY IN THE CREDIT SIDE OF THE PROFIT AND LOSS ACCOUNT HAS NETT ED OFF THE SAME AGAINST S UNDRY DEBIT BALANCE S WRITTEN OFF . IN THIS REGARD T HE LD. AR INVITED OU R ATTENTION TO PAGE 8 OF THE PAPER BOOK WHEREIN THE ASSESSEE HAS FURNISHED THE DETAILS AS TO HOW SUNDRY CREDIT BALAN CE WRITTEN OFF AMOUNT REFERRED ABOVE WAS ACCOUNTED FOR IN THE BOOKS OF ACCOUNTS . FOR THE SAKE OF CONVENIENCE WE REPRODUCE THE SAME BELOW: - PARTICULARS AMOUNT (RS.) AMOUNT (RS.) AMOUNT DISCLOSED IN 3CD TOWARDS SUNDRY CREDIT BALANCE WRITTEN BACK EXT RACT OF TALLY LEDGER - SUNDRY CREDIT BALANCE WRITTEN BACK TOTAL OF CREDIT SIDE (TOTAL - A) TOTAL OF DEBIT SIDE (TOTAL B) (MATERIAL REJECTION FROM KAIZEN CNC WRITTEN OFF - CN 1 & 2) NET BALANCE (TOTAL A - B) THIS AMOUNT IS TRANSFERRED TO SUNDRY BALANCE WRI TTEN OFF ACCOUNT TOTAL SUNDRY BALANCE WRITTEN OFF (TOTAL AS PER LEDGER) LESS: TRANSFERRED FROM SUNDRY CREDIT B A L WRITTEN BACK 3 33 287 (8 993) 3 24 294 3 26 575 3 24 294 3 33 287 ## ## GROUPED UNDER MISCELLANEOUS EXPENSES IN SCHEDULE O 2 281 ITA NO. 4778 / MUM/201 3 3 ON PERUSAL OF THE ABOVE SAID STATEMENT WE FIND MERIT IN THE CONTENTION OF THE ASSESSEE. THE ASSESSEE HAS DEBITED A SUM OF RS.2 281/ - IN THE PROFIT AND LOSS ACCOUNT WHICH IS THE NET BALANCE AFTER ADJUSTMENT OF SUNDRY CREDIT BALANCE S WRITTEN OFF ACCOUNT AGAINST S UNDRY DEBIT BALANCE S WRITTEN OFF ACCOUNT MEANING THEREBY THE ASSESSEE HAS DULY OFFERED THE SUNDRY CREDIT BALANCE WRITTEN OFF AMOUNT OF RS.3 33 281/ - IN THE PROFIT AND LOSS ACCOUNT. HENCE WE ARE OF THE VIEW THAT THE AO WAS NO T JUSTIFIED IN DISALLOWING THE SAME AGAIN AND THE LD CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE SAME . ACCORDINGLY WE SET ASIDE THE ORDER OF LD. CIT(A) AND DIRECT THE AO TO DELETE THIS ADDITION. 4 . IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS A LLOWED. THE AB OVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 29TH APR 2015 . 29 TH APR 2015 SD SD ( / AMIT SHUKLA ) ( . . / B.R. BASKARAN) / JUDICIAL MEMB ER / ACCOUNTANT MEMBER MUMBAI: 29TH APR 2015 . . . ./ SRL SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - CONCERNED 4. / CIT CONCERNED 5. / DR ITAT MUMBAI CONCERNED 6. / GUARD FILE. / BY ORDER TRUE COPY (ASSTT. REGISTRAR) /ITAT MUMBAI