Toshita Fiscal Services (P) Ltd. v. Income Tax Officer

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The Tax PublishersITA No. 2254/Kol/2010 2012 TaxPub(DT) 1463 (Kol-Trib) INCOME TAX ACT, 1961 --Revision under section 263--Erroneous and prejudicial orderDeduction under section 36(1)(vii) allowed by AO after due verification-- Income Tax Act, 1961 Section 263 IN THE ITAT 'C' BENCH KOLKATA B.R. MITTAL, J.M. & S.V. MEHROTRA, A.M. Toshita Fiscal Services (P) Ltd. v. ITO ITA No. 2254/Kol/2010 A.Y. 2006-07 8 September 2011 Appellant by : A.K. Gupta Respondent by : Niraj Kumar, CIT ORDER S. V. Mehrotra, A. M. The assessee has preferred this appeal for assessment year 2006-07 against order of Ld. CIT-VI, Kolkata dated 16-11-2010 passed under section 263 of the Act. 2. The only ground of appeal reads as under : '1. For that on the facts and in the circumstances of the case the learned Commissioner of Income Tax -IV, Kolkata, was not justified in holding that the original Assessment Order dated 12-12-2008 allowing bad debts of Rs. 31,57,508 under section. 143(3) was erroneous and prejudicial to the interest of the revenue and thereby setting aside the Assessment Order for review by holding that the ruling by Hon'ble Supreme Court in the following cases were not applicable to the case as the facts are different and as because the issue in the cited case relates to whether that bad debt was a provision or not. Vijaya Bank v. CIT & Anr in Civil Appeals No. 3286-3287 of 2010 dated 15-4-2010 T.R.F. Ltd v. CIT, Ranci in Civil Appeal No.5293 of 2003 dated 9-2-2010. 2. For that the order under section 263 passes by learned Commissioner of Income Tax-XII, Kolkata is bad of law as well as facts. 3. For the appellant craves leave to add further ground or grounds of appeal before or at the time of hearing this appeal.' 3. Brief facts of the case are that after examination of assessment record of assessee, learned CIT noticed that an amount of Rs. 31,57,508 was debited as bad debt in the profit & loss account as under : SUBSCRIBE FOR FULL CONTENT

The Tax PublishersITA No. 2254/Kol/2010
2012 TaxPub(DT) 1463 (Kol-Trib)

INCOME TAX ACT, 1961

--Revision under section 263--Erroneous and prejudicial orderDeduction under section 36(1)(vii) allowed by AO after due verification--

Income Tax Act, 1961 Section 263

IN THE ITAT 'C' BENCH KOLKATA

B.R. MITTAL, J.M. & S.V. MEHROTRA, A.M.

Toshita Fiscal Services (P) Ltd. v. ITO

ITA No. 2254/Kol/2010

A.Y. 2006-07

8 September 2011

Appellant by : A.K. Gupta

Respondent by : Niraj Kumar, CIT

ORDER

S. V. Mehrotra, A. M.

The assessee has preferred this appeal for assessment year 2006-07 against order of Ld. CIT-VI, Kolkata dated 16-11-2010 passed under section 263 of the Act.

2. The only ground of appeal reads as under :

'1. For that on the facts and in the circumstances of the case the learned Commissioner of Income Tax -IV, Kolkata, was not justified in holding that the original Assessment Order dated 12-12-2008 allowing bad debts of Rs. 31,57,508 under section. 143(3) was erroneous and prejudicial to the interest of the revenue and thereby setting aside the Assessment Order for review by holding that the ruling by Hon'ble Supreme Court in the following cases were not applicable to the case as the facts are different and as because the issue in the cited case relates to whether that bad debt was a provision or not.

Vijaya Bank v. CIT & Anr in Civil Appeals No. 3286-3287 of 2010 dated 15-4-2010

T.R.F. Ltd v. CIT, Ranci in Civil Appeal No.5293 of 2003 dated 9-2-2010.

2. For that the order under section 263 passes by learned Commissioner of Income Tax-XII, Kolkata is bad of law as well as facts.

3. For the appellant craves leave to add further ground or grounds of appeal before or at the time of hearing this appeal.'

3. Brief facts of the case are that after examination of assessment record of assessee, learned CIT noticed that an amount of Rs. 31,57,508 was debited as bad debt in the profit & loss account as under :