2010 (1) TMI 1199 - AT - Income Tax

Summary

Issues involved: Appeal against Order dated 30-01-2009 by CIT(A)-19 for assessment year 2005-2006. Grounds: 1. Deletion of addition of Rs. 76,33,179 based on additional income declared in Survey Action. 2. Deletion of disallowance of bad debts amounting to Rs. 20,87,450 without proof of debts being bad.

Deletion of Addition of Rs. 76,33,179: The Revenue appealed against the deletion of the addition of Rs. 76,33,179 made by the Assessing Officer based on additional income declared in Survey Action. The Tribunal noted that the CIT(A) provided cogent reasons for concluding that the addition was not in accordance with the law in the peculiar circumstances of the case. The Tribunal agreed with the CIT(A)'s reasoning and upheld the Order, ultimately dismissing the appeal filed by the Revenue.

Deletion of Disallowance of Bad Debts: Another ground of appeal was the deletion of the disallowance of bad debts amounting to Rs. 20,87,450 without proof that the debts had become bad. The Tribunal observed that the CIT(A) had given cogent reasons for this deletion as well. Consequently, the Tribunal upheld the CIT(A)'s decision on this issue, affirming that the disallowance of bad debts was not justified in the circumstances of the case.

Conclusion: The Appellate Tribunal ITAT Mumbai, comprising D. Manmohan (Vice President) and Pramod Kumar (Accountant Member), dismissed the Revenue's appeal against the Order of the CIT(A)-19 for the assessment year 2005-2006. The Tribunal upheld the CIT(A)'s decisions to delete the addition of Rs. 76,33,179 and the disallowance of bad debts amounting to Rs. 20,87,450, finding that both actions were not in accordance with the law in the specific circumstances of the case. The Order was pronounced on January 27, 2010.