9911796707
TMI Blog2010 (11) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... unting to Rs.2,55,85,260 ; (2) levy of interest under section 234B ; and (3) levy of interest under section 220(2). Ground No. 1: After hearing both the parries, we find that during the assessment proceedings, the Assessing Officer noticed that there was a claim for bad debts amounting to Rs.3,17,45,508. On enquiry details were filed and reasons for claiming bad debts were also filed. The Assessing Officer was of the view that the debt has not really become bad. Moreover, in the case of a stock broker, payment outstanding from a customer, would not meet the requirement of section 36(2) and, therefore, this debt was not allowed. The learned Commissioner of Income-tax (Appeals) accepted the position that the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Income-tax (Appeals) has already given a finding that the debts from two parties, viz., Mr. Kandrap V. Parikh and Mr. Chetan J. Shah, have become bad vide paragraph 2.10, and this finding has not been challenged by the Revenue. Therefore, following the decision of the Special Bench of the Tribunal in the case of Deputy CIT v. Shreyas S. Morakhia [2010] 5 ITR (Trib) 1 (Mumbai), we hold that the assessee's claim for bad debt is allowable and, accordingly, we decide this issue in favour of the assessee. Ground No. 2: The issue regarding levy of interest under section 234B is of consequential in nature and the Assessing Officer is directed to levy the interest in accordance with law. Ground No. 3: Learned counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact, attributable to section 139(8) or section 215, it is nevertheless a part of the process assessing the tax liability of the assessee. Inasmuch as the levy of interest is a part of the process of assessment, it is open to an assessee to dispute the levy in appeal provided he limits himself to the ground that he is not liable to the levy at all." Therefore following the above order, we set aside the order of the learned Commissioner of Income-tax (Appeals) and remit the matter back to his file with a direction to adjudicate this issue on the merits. In the result, the appeal is partly allowed. I. T. A. No. 3087/M/08-Assessment year 2005-06: In this appeal various grounds have been raised but at the time of hearing, learne ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
