COMMISSIONER OF INCOME TAX DELHI X vs. HANDLOOM SAREE BHAWAN

ITA - 1290 / 2008HC Delhi19 November 20081 pages

For Petitioner: PREM LATA BANSAL

AI SummaryDismissed

What did the High Court hold?

The High Court held that no substantial question of law arises for its consideration. The Tribunal had concluded that since the assessee had written off the debts in its books of accounts, there was no infirmity in the order passed by the Commissioner of Income Tax (Appeals). The High Court agreed with this conclusion, implying that the act of writing off the debts in the books was a decisive factor. Consequently, the appeal filed by the Revenue was dismissed. The operative direction was the dismissal of the appeal, with no issues left undecided.

What were the facts?

The Revenue preferred an appeal before the Income Tax Appellate Tribunal (ITAT) against an order dated 26.05.2005 passed by the Commissioner of Income-tax (Appeals). The CIT(A) had deleted an addition of Rs 24,76,299/- made on account of bad debts. The ITAT, in its order dated 8.11.2007, upheld the deletion by the CIT(A), finding no infirmity as the assessee had written off the debts in its books of accounts. The present appeal is filed by the Revenue against the ITAT's order for the assessment year 2002-03.

What were the issues?

1. Whether a substantial question of law arises for consideration regarding the deletion of an addition of Rs 24,76,299/- on account of bad debts, where the assessee had written off such debts in its books of accounts. Assessee's Contention: The judgment does not record any specific arguments made by the assessee before the High Court. However, the ITAT's reasoning, which was upheld, implies that writing off debts in the books of accounts was sufficient for their deductibility. Revenue's Contention: The Revenue contended before the ITAT that the CIT(A) erred in deleting the addition of Rs 24,76,299/- on account of bad debts. The Revenue's appeal to the High Court was based on the ITAT's order upholding this deletion.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . 19.11.2008 . Present: Ms Prem Lata Bansal, Mr Mohan Parsad Gupta, and Ms Anshul Sharma, for the Appellant Ms Sashi M. Kapila and Mr Ram Raj for the respondent . + ITA 1290/2008 . This appeal is directed against the order dated 8.11.2007 passed by the Income Tax Appellate Tribunal in ITA No 3314/Del/05 pertaining to the assessment year 2002-03. The revenue had preferred an appeal before the Tribunal being aggrieved by the order passed by the Commissioner of Income-tax (Appeals) dated 26.05.2005 on the ground that the said Commissioner had erred in deleting the addition of Rs 24,76,299/- on account of bad debts. The Tribunal has concluded that since the assessee had written off debts in its books of accounts, there was no infirmity in the order passed by the Commissioner of Income Tax (Appeals). No substantial question of law arises for our consideration. Dismissed. . BADAR DURREZ AHMED, J . . RAJIV SHAKDHER, J November 19, 2008 kk . . . 7 and 8 .

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