Dish India Ltd. v. Asstt. CIT

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The Tax Publishers2012 TaxPub(DT) 0023 (Mum-Trib) : (2012) 043 (II) ITCL 0061 : (2011) 047 SOT 0514 INCOME TAX ACT, 1961 --Appeal (Tribunal)--MaintainabilityDefinite finding by CIT on appellable issue--Original assessment had been set aside by CIT while passing order under section 263. The CIT in show-cause notice proposed to revise the assessment order on two grounds including the issue of deduction of tax under section 195 and consequently disallowance under the provisions of section 40(a) with regard to Bandwidth charges paid for providing net on cable to customers. CIT had discussed the issue elaborately while passing the order under section 263. Thereafter, AO had passed consequential order under section 143(3) read with section 263. The Bench raised a query as how the appeal of assessee regarding the issue of disallowance of Bandwidth charges under section 40(a) was maintainable when this issue was decided by CIT. Assessee contended that when the issue had been decided afresh by AO then there was no bar in challenging the order of AO passed under section 143(3) read with section 263. Held: When CIT while passing 263 order had given a definite finding on the issue of disallowance of Bandwidth charges and the said order had attained the finality on account of not being challenged by assessee then assessee could not be allowed to challenge such definite finding in an appeal filed against the orders passed by AO in pursuant to the revision order under section 263. Therefore, the appeal filed by assessee was not maintainable. Income Tax Act, 1961 Section 253 Income Tax Act, 1961 Section 263 INCOME TAX ACT, 1961 --Business deduction under section 36(1)(vii)--Bad debtsAssessee failed to prove debts as bad--Assessee had claimed bad debts under section 36(1)(vii). AO disallowed the same on the ground that assessee failed to prove that what steps were taken to recover the debts. Held: Assessee was not required to establish that debts had actually gone bad and it was enough if bad debts were written off as irrecoverable in the accounts of assessee. Therefore, debts written off were allowable as deduction under section 36(1)(vii). SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2012 TaxPub(DT) 0023 (Mum-Trib) : (2012) 043 (II) ITCL 0061 : (2011) 047 SOT 0514

INCOME TAX ACT, 1961

--Appeal (Tribunal)--MaintainabilityDefinite finding by CIT on appellable issue--Original assessment had been set aside by CIT while passing order under section 263. The CIT in show-cause notice proposed to revise the assessment order on two grounds including the issue of deduction of tax under section 195 and consequently disallowance under the provisions of section 40(a) with regard to Bandwidth charges paid for providing net on cable to customers. CIT had discussed the issue elaborately while passing the order under section 263. Thereafter, AO had passed consequential order under section 143(3) read with section 263. The Bench raised a query as how the appeal of assessee regarding the issue of disallowance of Bandwidth charges under section 40(a) was maintainable when this issue was decided by CIT. Assessee contended that when the issue had been decided afresh by AO then there was no bar in challenging the order of AO passed under section 143(3) read with section 263. Held: When CIT while passing 263 order had given a definite finding on the issue of disallowance of Bandwidth charges and the said order had attained the finality on account of not being challenged by assessee then assessee could not be allowed to challenge such definite finding in an appeal filed against the orders passed by AO in pursuant to the revision order under section 263. Therefore, the appeal filed by assessee was not maintainable.

Income Tax Act, 1961 Section 253

Income Tax Act, 1961 Section 263

INCOME TAX ACT, 1961

--Business deduction under section 36(1)(vii)--Bad debtsAssessee failed to prove debts as bad--Assessee had claimed bad debts under section 36(1)(vii). AO disallowed the same on the ground that assessee failed to prove that what steps were taken to recover the debts. Held: Assessee was not required to establish that debts had actually gone bad and it was enough if bad debts were written off as irrecoverable in the accounts of assessee. Therefore, debts written off were allowable as deduction under section 36(1)(vii).