NAGREEKA FOILS LTD.,KOLKATA vs. D.C.I.T., CIRCLE - 3(1), KOLKATA

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ITA 1788/KOL/2024Status: DisposedITAT Kolkata22 July 2025AY 2010-2011Bench: SHRI PRADIP KUMAR CHOUBEY (Judicial Member), SHRI RAKESH MISHRA (Accountant Member)11 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal allowed the appeals, holding that the disallowance under Section 14A should be restricted to investments yielding exempt income and that interest disallowance under Section 36(1)(iii) was not justified as advances were made out of sufficient own funds for commercial expediency.

What were the facts?

The assessee company filed appeals against the orders of the CIT(A) concerning disallowances made under Section 14A read with Rule 8D and Section 36(1)(iii) for assessment years 2010-11, 2011-12, and 2013-14. The appeal for AY 2011-12 was initially barred by limitation but was condoned.

What were the issues?

Whether disallowance under Section 14A should be calculated on all investments or only those yielding exempt income, and whether interest disallowance under Section 36(1)(iii) is warranted when advances are made from own funds for commercial expediency.

Which sections of the Income-tax Act were involved?

Section 14A,Section 36(1)(iii),Section 250,Section 143(3),Section 263

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, KOLKATA ‘B’ BENCH, KOLKATA

Before: SHRI PRADIP KUMAR CHOUBEY & SHRI RAKESH MISHRA

order : 22-July-2025 ORDER PER RAKESH MISHRA, ACCOUNTANT MEMBER: These appeals filed by the assessee are against the separate orders of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AYs 2010-11, 2011-12 & 2013- 14 dated 27.06.2024, which have been passed against the assessment Page 2 of 11 Page 3 of 11

4.

Aggrieved with the assessment order, the assessee filed an appeal before the Ld. CIT(A), who deleted the disallowance u/s 14A of the Act read with Rule 8D of the Income Tax Rules, 1962 of ₹75,58,500/- and further disallowance of 0.5% of the average value of investments at ₹30,37,03,361/- and granted additional relief to the assessee and the appeal was partly allowed. Further aggrieved with the order of the Ld. CIT(A), the assessee has filed the appeal before this Tribunal.

5.

Rival submissions were heard and the record and the submissions made have been examined. The assessee has filed the written submission as under:

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