DCIT, New Delhi v. M/s Embee Diagnostics Pvt. Ltd.,, Delhi

ITA 5542/DEL/2013 | 2007-2008
Pronouncement Date: 11-04-2014 | Result: Dismissed

Appeal Details

RSA Number 554220114 RSA 2013
Assessee PAN AAACE0709K
Bench Delhi
Appeal Number ITA 5542/DEL/2013
Duration Of Justice 6 month(s) 1 day(s)
Appellant DCIT, New Delhi
Respondent M/s Embee Diagnostics Pvt. Ltd.,, Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 11-04-2014
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 11-04-2014
Assessment Year 2007-2008
Appeal Filed On 10-10-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH B BB B : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G.D.AGRAWAL D.AGRAWAL D.AGRAWAL D.AGRAWAL VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SHRI SHRI SHRI I.C. SUDHIR I.C. SUDHIR I.C. SUDHIR I.C. SUDHIR JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO. .. .5542/DEL/2013 5542/DEL/2013 5542/DEL/2013 5542/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2007 2007 2007 2007- -- -08 0808 08 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX INCOME TAX INCOME TAX INCOME TAX CIRCLE CIRCLE CIRCLE CIRCLE- -- -11(1) 11(1) 11(1) 11(1) NEW DELHI NEW DELHI NEW DELHI NEW DELHI. .. . VS. VS. VS. VS. M/S EMBEE DIAGNOSTICS PVT.LTD. M/S EMBEE DIAGNOSTICS PVT.LTD. M/S EMBEE DIAGNOSTICS PVT.LTD. M/S EMBEE DIAGNOSTICS PVT.LTD. 1864 1864 1864 1864- -- -65 HAVELI JUGAL KISHORE 65 HAVELI JUGAL KISHORE 65 HAVELI JUGAL KISHORE 65 HAVELI JUGAL KISHORE CHANDNI CHOWK CHANDNI CHOWK CHANDNI CHOWK CHANDNI CHOWK DELHI DELHI DELHI DELHI 110 006. 110 006. 110 006. 110 006. PAN : AAACE0709K. PAN : AAACE0709K. PAN : AAACE0709K. PAN : AAACE0709K. (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. NIDHI SRIVASTAVA CIT-DR. RESPONDENT BY : SHRI S.K. GUPTA CA. ORDER ORDER ORDER ORDER P PP PER G. ER G. ER G. ER G.D.AGRAWAL D.AGRAWAL D.AGRAWAL D.AGRAWAL VP VPVP VP : : : : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XIII NEW DELHI DATED 31 ST JULY 2013 FOR THE AY 2007-08. 2. THE GROUNDS RAISED BY THE REVENUE READ AS UNDER: - 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.11 53 897/- MADE ON ACCOUNT OF PROVISION OF DOUB TFUL DEBTS. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE CIT(A) HAS ERRED IN HOLDING THAT THE SUM O F RS.11 53 897/- REPRESENTED BAD DEBT WRITTEN OFF W ITHOUT VERIFYING THEIR ACTUAL WRITE OFF IN THE BOOKS OF AC COUNTS. 3. THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILE D THE RETURN DECLARING TOTAL INCOME OF ` 38 42 906/-. THE ORIGINAL ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) ON 30 TH OCTOBER 2009 AT THE INCOME OF ` 39 81 610/-. THE ASSESSMENT WAS REOPENED ON THE GR OUND THAT THE ASSESSEE HAS DEBITED AN AMOUNT OF ` 11 53 897/- TO THE PROFIT & LOSS ITA-5542/DEL/2013 2 ACCOUNT ON ACCOUNT OF PROVISION FOR DOUBTFUL DEBTS . DURING REASSESSMENT PROCEEDINGS THE ASSESSEE STATED THAT THERE IS NO PROVISION MADE FOR BAD AND DOUBTFUL DEBTS AND ` 11 53 897/- HAS ACTUALLY BEEN WRITTEN OFF BY DEBITING THE SAME TO T HE PROFIT & LOSS ACCOUNT WHICH WAS BY MISTAKE WRITTEN AS PROVISION FOR DOUBTFUL DEBTS. THE ASSESSING OFFICER DID NOT ACCEPT THE ASSESSEES CONTENTION WITH THE FOLLOWING FINDING:- FURTHER THE CONTENTION OF THE ASSESSEE THAT NO PR OVISION WAS MADE DURING THE YEAR AND RS.11 53 897/- WERE ACTUALLY BEEN WRITTEN OFF BUT BY TYPOGRAPHICAL ERRO R THE SAME IS WRITTEN AS PROVISION FOR DOUBTFUL DEBTS. THE CONTENTION OF THE ASSESSEE ON THIS GROUND IS NOT AC CEPTABLE AS AT THE TIME OF ORIGINAL ASSESSMENT PROCEEDINGS T HE ASSESSEE DID NOT DISCLOSE THIS FACT BEFORE THE ASSE SSING OFFICER WHICH MEANS THAT ASSESSEES CONTENTION WER E NOT GENUINE OR INCIDENTAL OR NORMAL BUT IT HAS BEEN DON E WITH A SPECIFIC MOTIVE TO CLAIM EXCESS DEDUCTION AND AVOID PAYMENT OF TAXES. 4. LEARNED CIT(A) ACCEPTED THE ASSESSEES CONTENTIO N THAT THE AMOUNT HAS ACTUALLY BEEN WRITTEN OFF IN THE BOOKS O F ACCOUNT AND DELETED THE ADDITION OF ` 11 53 897/-. THE REVENUE AGGRIEVED WITH THE ORDER OF LEARNED CIT(A) IS IN APPEAL BEFORE US. 5. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D PERUSED THE MATERIAL PLACED BEFORE US. AFTER CONSIDERING THE F ACTS OF THE CASE AND ARGUMENTS OF BOTH THE SIDES WE DO NOT FIND ANY INF IRMITY IN THE ORDER OF LEARNED CIT(A). BEFORE THE ASSESSING OFFICER T HE ASSESSEE CLEARLY MENTIONED THAT THE AMOUNT OF ` 11 53 897/- IS ACTUALLY WRITTEN OFF AND BY MISTAKE THE SAME WAS WRITTEN AS PROVISION FOR B AD DEBTS. THE ASSESSING OFFICER REJECTED THE ASSESSEES CLAIM SIM PLY STATING THAT THIS GROUND IS NOT ACCEPTABLE AS AT THE TIME OF ORIGINA L ASSESSMENT PROCEEDINGS THE ASSESSEE DID NOT DISCLOSE THIS FAC T BEFORE THE ASSESSING OFFICER. WE FIND THAT IN THE ORIGINAL AS SESSMENT PROCEEDINGS THIS CLAIM OF THE ASSESSEE WAS ACCEPTED MEANING TH EREBY EITHER NO ITA-5542/DEL/2013 3 EXPLANATION WAS SOUGHT AT THE TIME OF ORIGINAL ASSE SSMENT PROCEEDINGS OR IF SOUGHT THE ASSESSING OFFICER WAS SATISFIED WITH THE ASSESSEES EXPLANATION. IN VIEW OF THE ABOVE WE DO NOT FIND ANY JUSTIFICATION TO INTERFERE WITH THE ORDER OF LEARNED CIT(A). THE SA ME IS SUSTAINED AND REVENUES APPEAL IS DISMISSED. 6. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 11 TH APRIL 2014. SD/- SD/- ( (( (I.C. SUDHIR I.C. SUDHIR I.C. SUDHIR I.C. SUDHIR) )) ) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 11.04.2014 VK. COPY FORWARDED TO: - 1. APPELLANT : DEPUTY COMMISSIONER OF INCOME TA X DEPUTY COMMISSIONER OF INCOME TAX DEPUTY COMMISSIONER OF INCOME TAX DEPUTY COMMISSIONER OF INCOME TAX CIRCLE CIRCLE CIRCLE CIRCLE- -- -11(1) 11(1) 11(1) 11(1) NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. 2. RESPONDENT : M/S EMBEE DIAGNOSTICS PVT.LTD. M/S EMBEE DIAGNOSTICS PVT.LTD. M/S EMBEE DIAGNOSTICS PVT.LTD. M/S EMBEE DIAGNOSTICS PVT.LTD. 1864 1864 1864 1864- -- -65 HAVELI JUGAL KISHORE 65 HAVELI JUGAL KISHORE 65 HAVELI JUGAL KISHORE 65 HAVELI JUGAL KISHORE CHANDNI CHOWK DELHI CHANDNI CHOWK DELHI CHANDNI CHOWK DELHI CHANDNI CHOWK DELHI 110 006. 110 006. 110 006. 110 006. 3. CIT 4. CIT(A) 5. DR ITAT ASSISTANT REGISTRAR