ACIT 8(1), MUMBAI v. M/S. BEST IT WORLD (INDIA) PVT. LTD, MUMBAI

ITA 1398/MUM/2009 | 2004-2005
Pronouncement Date: 23-02-2010 | Result: Dismissed

Appeal Details

RSA Number 139819914 RSA 2009
Assessee PAN AAACP6597N
Bench Mumbai
Appeal Number ITA 1398/MUM/2009
Duration Of Justice 11 month(s) 23 day(s)
Appellant ACIT 8(1), MUMBAI
Respondent M/S. BEST IT WORLD (INDIA) PVT. LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 23-02-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 23-02-2010
Assessment Year 2004-2005
Appeal Filed On 02-03-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B MUMBAI BEFORE SHRI R.S.SYAL AM AND SHRI R.S.PADVEKAR JM ITA NO.1398/MUM/2009 : ASST.YEAR 2004-2005 THE ASSTT.COMMISSIONER OF INCOME-TAX CIRCLE 8(1) MUMBAI. VS. M/S.BEST IT WORLD (INDIA) PVT. LTD. 87 MISTRY INDUSTRIAL COMPLEX MIDC CROSS ROAD `A ANDHERI (E) MUMBAI 400 093. PA NO.AAACP6597N. (APPELLANT) (RESPONDENT) APPELLANT BY : S/SHRI T.T.JACOB & SATISHCHANDRA RESPONDENT BY : SHRI SAMEER G.DALAL O R D E R PER : R.S.SYAL AM : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 5.12.2008 I N RELATION TO THE ASSESSMENT YEAR 2004-2005. 2. THE ONLY GROUND RAISED IN THIS APPEAL IS AGAINST THE DELETION OF ADDITION OF RS.16 06 416 MADE BY THE ASSESSING OFFICER ON ACCOU NT OF BAD DEBTS. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE ASSESSEE WAS ENGAGED IN THE BUSINESS OF TRADING IN COMPUTER SYSTEMS PERIPHERALS COMPONENT S AND ALLIED PRODUCTS. IT HAD WRITTEN OFF BAD DEBTS TO THE TUNE OF RS.16 94 116 I N THE BOOKS OF ACCOUNT. THE AO AGREED WITH THE ASSESSEES SUBMISSION ONLY TO THE E XTENT OF RS. 87 700. THE REMAINING AMOUNT OF RS. 16.06 LACS WAS ADDED BY THE AO. THE LEARNED CIT(A) OVERTURNED THE ASSESSMENT ORDER ON THIS ISSUE. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD IT IS NOTED THAT THE ASSESSEE HAD WRITTEN OF F THIS AMOUNT IN THE INSTANT YEAR AND CLAIMED DEDUCTION AS BAD DEBT. SECTION 36(1)(VI I) PROVIDES THAT SUBJECT TO THE PROVISIONS OF SUB-SECTION (2) OF SECTION 36 THE AM OUNT OF ANY BAD DEBT OR PART THEREOF WHICH IS WRITTEN OFF AS IRRECOVERABLE IN TH E BOOKS OF ACCOUNT OF THE ASSESSEE ITA NO.1398/MUM/2009 M/S.BEST IT WORLD (INDIA) PVT. LTD. 2 SHALL BE ALLOWED AS DEDUCTION. THERE IS NO FINDING OF THE AO THAT THE CONDITIONS OF SECTION 36(2) WERE NOT FULFILLED IN THIS CASE. THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF DCIT VS. OMAN INTERNATIONAL BANK SAOG [(2006) 100 I TD 285 (MUM.) (SB)] HAS HELD THAT AFTER 1.4.1989 THE ASSESSEE IS NOT REQUIRED TO ESTABLISH THAT THE DEBT HAS BECOME BAD IN THE YEAR OF CLAIM AND THE DEDUCTION IS AVAILABLE ON SIMPLE WRITE OFF. THIS VIEW HAS BEEN UPHELD BY THE HONBLE BOMBAY HIGH COURT IN THE CASE OF DCIT VS. OMAN INTERNATIONAL BANK SAOG [(2009) 313 I TR 128 (BOM.)]. SIMILAR VIEW HAS BEEN TAKEN IN CIT VS. STAR CHEMICALS PVT. LTD. [(2009) 313 ITR 126 (BOM.)]. IN THE ABSENCE OF ANY FINDING GIVEN BY THE ASSESSI NG OFFICER IN THE ASSESSMENT ORDER THAT THE DEBT HAD NOT BECOM E BAD IN OUR CONSIDERED OPINION THE LEARNED CIT(A) WAS JUSTIFIED IN ALLOWI NG DEDUCTION. WE THEREFORE UPHOLD THE IMPUGNED ORDER ON THIS ISSUE. 4. IN THE RESULT THE APPEAL IS DISMISSED. ORDER PRONOUNCED ON THIS 23 RD DAY OF FEBRUARY 2010. SD/- SD/- ( R.S.PADVEKAR ) ( R.S.SYAL ) JUDICIAL MEMBER ACCOUNTANT ME MBER MUMBAI : 23 RD FEBRUARY 2010. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) VIII MUMBAI. 5. THE DR/ITAT MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR ITAT MUMBAI.