NURSING VANIJYA LTD.,KOLKATA vs. D.C.I.T., CIRCLE - 7(1), KOLKATA

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ITA 333/KOL/2026Status: DisposedITAT Kolkata29 June 2026AY 2017-20184 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the disallowance under Section 14A cannot exceed the exempt income earned. Therefore, the disallowance was restricted to the actual exempt income.

What were the facts?

The assessee claimed a disallowance of Rs. 14,55,313/- under Section 14A read with Rule 8D. However, the exempt income earned by the assessee was only Rs. 251.16/-.

What were the issues?

Whether the disallowance under Section 14A can exceed the amount of exempt income earned by the assessee.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, KOLKATA

Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA

For Appellant: Shri S. K. Tulsiyan, Advocate & Puja Somani, CA
For Respondent: Shri Aditya Bikram, Sr. DR
Hearing: 29.06.2026Pronounced: 29.06.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No.333/Kol/2026 Assessment Year: 2017-18

Nursing Vanijya Ltd. DCIT, Circle-7(1), Kolkata Vs 12/1B, Lindsay Street, New Market, Kolkata- 700087. (PAN: AAACN8512H) (Appellant) (Respondent)

Assessee by : Shri S. K. Tulsiyan, Advocate & Puja Somani, CA Revenue by : Shri Aditya Bikram, Sr. DR Date of Hearing : 29.06.2026 Date of Pronouncement : 29.06.2026

ORDER Per George Mathan, JM: This is an appeal filed by the assessee against the order of the ADDL/JCIT(A)-2, VADODARA [hereinafter referred to as the ‘CIT(A)’] in appeal no.CIT(A), Kolkata-3/10356/2019-20 dated 24.11.2025.

2.

Shri S. K. Tulsiyan, Advocate & Puja Somani, CA represented on behalf of the assessee and Shri Aditya Bikram, Sr. DR represented on behalf of the revenue.

3.

It was submitted by the ld. AR that the only issue in the assessee’s appeal is against the disallowance made u/s 14A r.w.r 8D. It was the submission that the exempt income received by the assessee was only

ITA No.2357/Kol/2025

Rs.251.16/-. The ld. AR has placed before us the details of exempt income received which reads as follows:

3.1 It was the submission that the Assessing Officer has disallowed Rs.14,55,313/- by invoking the provisions of section 14A r.w.r. 8D. The

ITA No.2357/Kol/2025 ld. AR submitted that the Hon’ble Supreme Court in the case of PCIT vs. Caraf Builders & Constructions (P) Ltd. reported in 112 taxmann.com 322 (SC) categorically held that upper disallowance cannot exceed exempt income of the relevant assessment year. It was the submission that the disallowance made by the Assessing Officer may be restricted to the exempt income of Rs.251.16/-.

4.

In reply, the ld. Sr. DR vehemently supported the orders of the Assessing Officer and ld. CIT(A).

5.

We have considered the rival submissions. A perusal of the facts in the present case clearly shows that the exempt income as received by the assessee is only to an extent of Rs.251.16/-. This being so, respectfully following the principles laid down in the case of PCIT vs. Caraf Builders & Constructions (P) Ltd. of the Hon’ble Delhi High Court reported in 414 ITR 122 (Delhi), the disallowance made by the Assessing Officer though computed Rs.14,55,313/-, the same stands restricted to Rs.251.16/-.

6.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 29/06/2026. Sd/- Sd/- [Rakesh Mishra] [George Mathan] लेखा सदस्य/Accountant Member न्याययक सदस्य/Judicial Member

Dated: 29/06/2026 RS

ITA No.2357/Kol/2025

Copy of the order forwarded to: 1. Appellant - 2. Respondent – 3. CIT(A)- 4. CIT- , 5. CIT(DR),

//True copy// By order Assistant Registrar, Kolkata Benches

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