Income Tax Appellate Tribunal - Mumbai
Uni Deritend Ltd Liberty Bldg, Mumbai vs Department Of Income Tax on 16 February, 2009
IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCHES "F" : MUMBAI
BEFORE SHRI D.MANMOHAN, HON'BLE VICE PRESIDENT
AND
SHRI RAJENDRA SINGH, ACCOUNTANT MEMBER
ITA. No. 3327/Mum/2009
Assessment year 2005-2006
ACIT 1 (3) M/s. Uni Deritend Ltd.
Mumbai - 020. vs. Mumbai - 400 020
PAN AAACU-0028-K
(Appellant) (Respondent)
For Appellant : Shri Virendra Ojha, D.R.
For Respondent : Shri Ajay Thakare
ORDER
PER SHRI D. MANMOHAN, V.P.
1. This appeal, filed at the instance of the Revenue, is directed against the Order dated 16-2-2009 passed by the CIT (A)-XXI, Mumbai and it pertains to the assessment year 2005-2006. The only ground urged by the Revenue reads as under :
"On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in directing the Assessing Officer to allow bad debts aggregating to Rs.44,73,535/- as claimed by the assessee."
2. At the time of hearing learned Departmental Representative submitted that the assessee has to prima facie prove that the debt is bad and written off as irrecoverable in the books of the assessee as per section 36(1)(vii) of the Act and the legislation has not given the assessee a wide discretion to write off any debt at will.
3. On the other hand, learned Counsel appearing on behalf of the assessee strongly relied upon the decision of the Hon'ble High Court in the case of Director of Income Tax (International Taxation) vs. 2 Oman International Bank (2009) 313 ITR 128 and thus supported the Order passed by the learned CIT(A).
4. We have carefully considered the rival submissions and perused the record. It is not the case of the Revenue that the reasons given for writing off are false. It is not in dispute that the debt has been written off in the books of account. Under these circumstances, we are of the view that the issue stands covered by the decision of the Hon'ble jurisdictional High Court (supra). Therefore, we find no infirmity in the order of the learned CIT(A) and dismiss the appeal filed by the Revenue.
Pronounced accordingly
Sd/- Sd/-
(RAJENDRA SINGH) (D.MANMOHAN)
ACCOUNTANT MEMBER VICE PRESIDENT
Mumbai, Dt. 09th February, 2010
VBP/-
Copy to
1. ACIT 1 (3), Room No. 540/564, 5th Floor, Aayakar Bhavan, M.K.Road, New Marine Lines, Mumbai - 400 020.
2. M/s. Uni Deritend Ltd. Liberty Building, Sir Vithaldas Thackersey Marg, New marine Lines, Mumbai - 400 020. PAN AAACU-0028-K
3. CIT(A)-XXI, Mittal Court, 'B' Wing, R.Nos. 13 & 14, 3rd Floor, Nariman Point, Mumbai - 400 021.
4. CIT, City-1, Mumbai
5. DR "F" Bench
6. Guard File (True copy) By Order Asst. Registrar, ITAT, Mumbai Benches MUMBAI.