Triton Health Care Private Limited, ... vs Assessee

IN THE INCOME TAX APPELLATE TRIBUNAL "A" BENCH, CHENNAI ी ए. मोहन अलंकामणी, लेखा सद य एवं ी वी. दग ु ा# राव, या$यक सद य केसम%

BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER

आयकर अपील सं./ITA No.1689/Mds/2014 $नधा#रण वष# /Assessment Year : 2009-10

M/s Triton Health Care Private Limited, The Assistant Commissioner of No.9, Dhanalakshmi Colony, v. Income Tax, Natarajan Street, Vadapalani, Company Circle - III(2), Chennai - 600 026. Chennai - 600 034.

PAN :AABCT 3051 A (अपीलाथ*/Appellant) (+,यथ*/Respondent)

अपीलाथ* क- ओर से/Appellant by : Shri T. Banusekar, CA +,यथ* क- ओर से/Respondent by : Shri P. Radhakrishnan, JCIT

सन ु वाई क- तार ख/Date of Hearing : 18.02.2015 घोषणा क- तार ख/Date of Pronouncement: 25.02.2015

आदे श /O R D E R

PER V. DURGA RAO, JUDICIAL MEMBER:

This appeal filed by the assessee is directed against the

order of the Commissioner of Income Tax (Appeals)-III, Chennai,

dated 28.03.2014 relevant to the assessment year 2009-10. 2 I.T.A. No. 1689/Mds/2014

2. Facts in brief are that the assessee is engaged in trading of

pharmaceutical products. The assessee filed return of income

declaring a total income of ` 55,93,370/-. The return filed by the

assessee was processed under Section 143(1) of Income-tax Act,

1961 (in short 'the Act') and the assessment was completed under

Section 143(3) of the Act. During the assessment proceedings, the

A.O. observed that the assessee had written off an amount of `

13,62,187/- being bad debts during the year. The A.O. has asked

the assessee to furnish partywise breakup on the same and ledger

extract of the respective debtors in its books. The assessee filed

the same. However, the A.O. has noticed that the assessee has

written off the respective debts in the debtors ledger only to an

extent of ` 1,365/- in the case of Lakshmi Medicals and in respect of

other debtors has not reduced the debtor balances. Hence, the

A.O. has added an amount of ` 13,60,822/- being an amount of bad

debts debited to Profit & Loss account but not written off as

irrecoverable in the respective sundry debtors ledger, to the total

income of the assessee.

3. When the assessee carried the matter in appeal before the

Ld. CIT(Appeals), the Ld. CIT(Appeals) confirmed the order of the

A.O. by observing that a sum of ` 1365/- in the case of Lakshmi 3 I.T.A. No. 1689/Mds/2014

Medicals was written off by the assessee and not in other cases.

This was pointed out by the AR during the course of hearing on

10.03.2014 and the same was accepted by him. Hence, the Ld.

CIT(Appeals) confirmed the order of the A.O.

4. On being aggrieved, the assessee carried the matter in

appeal before the Tribunal. The Ld.counsel for the assessee has

submitted that the Ld. CIT(Appeals) without considering the

submissions of the assessee, confirmed the order of the Assessing

Officer. The assessee has filed a paper-book containing - (1)

Declaration from the authorized representative; (2) Copy of balance

sheet, Profit & Loss account along with schedules for the financial

year 2008-09; (3) Copy of letter filed before CIT(A) on 19.03.2014;

(4) Copy of journal entry bearing no.798 dated 31.03.2009 and (5)

Copy of ledger extracts of parties claimed as bad debts.

5. On the other hand, the Ld. D.R. has submitted that the issue

has to be remitted back to the file of the A.O. for fresh examination.

6. We have heard both sides and perused the records and

gone through the orders of the authorities below. The Ld.counsel

for the assessee has accepted the proposal made by the Ld. D.R. to

remit back the issue to the file of the A.O. In view of this, we set 4 I.T.A. No. 1689/Mds/2014

aside the order passed by the Ld. CIT(Appeals) and remit the

matter back to the file of the A.O. to decide the issue de novo after

examining the details filed by the assessee and affording

reasonable opportunity of being heard to it.

7. In the result, the appeal filed by the assessee is allowed for

statistical purposes.

Order pronounced on Wednesday, the 25th of February,

2015 at Chennai.

Sd/- sd/- (ए. मोहन अलंकामणी) (वी. दग ु ा# राव) (A. Mohan Alankamony) (V. Durga Rao) लेखा सद य/Accountant Member या$यक सद य/Judicial Member

चे नई/Chennai, th =दनांक/Dated, the 25 February, 2015.

Kri.

आदे श क- +$त?ल@प अAे@षत/Copy to: 1. अपीलाथ*/Appellant 2. +,यथ*/Respondent 3. आयकर आयB ु त (अपील)/CIT(A)-III, Chennai-34 4. आयकर आयB ु त/CIT, Chennai-III, Chennai-34 5. @वभागीय +$त$न ध/DR 6. गाड# फाईल/GF.