SSL CONSOLIDATED LIMITED,HOWRAH vs. I.T.O., WARD - 13(4), KOLKATA NOW WARD - 13(1), KOLKATA, KOLKATA

These are appeals preferred by the assessee against the orders of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 14.05.2024 for the AYs 2012-13 &
2013-14. 02. The only issue raised by the assessee in the various grounds of appeal is against the confirmation of addition of ₹33,41,021/- by the ld. CIT
(A) as made by the ld. AO u/s 14A of the Act r.w.r. 8D of the Rules.
03. The facts in brief are that this is a second round of litigation before us.
The order passed by the ld. CIT (A) is an ex-parte order, for which the assessee filed the affidavit stating therein that only single notice for both the assessment years, was issued by the ld. CIT (A) for which the adjournment was sought by the assessee on the ground that office of the ld. AR was closed since the whole country was reeling under Covid pandemic. Thereafter, no notice was issued by the ld. CIT (A).
ITA Nos.1332 & 1333/KOL/2024
SSL Consolidated Limited; A.Y. 2012-13 & 2013-14

and on 14.05.2024, the ld. CIT (A) passed ex-parte order without giving any further opportunity to the assessee.
04. Considering the issue involved being an open and shut case in favor of the assessee, we are not inclined to restore the issue to the file of the ld. CIT (A) though the ld CIT(A) decided these appeals ex-parte. The issue involved in the present case is that the assessee has earned exempt income of ₹13,18,219/- against which the ld. AO made disallowance u/s 40(A) Rule 8D of the Rules of ₹33,41,021/-. In our opinion, the disallowance cannot exceed the amount of exempt income as has been held in the cases of Principal commissioner of Income Vs Reliance Chemotex Industries Ltd (2022) 138 tamann.com
199 (Cal) and Deputy Commissioner of Income Tax Vs Jite Shipyard
Ltd.(2023) 157 taxmann.com 733(Delhi).Therefore, we set aside the appeal to the file of the ld. AO with a direction to restrict the disallowance to the exempt income. Accordingly, the appeal of the assessee is allowed for statistical purpose.
05. The issue raised by the assessee is against the confirmation of disallowance of ₹43,65,537/- by the ld. CIT (A) as made by the ld. AO u/s 14A of the Act.
The facts in brief are that the assessee had exempt income of ₹ Rs.
13,88,399/-while the disallowance made by the AO was ₹ 43,65,537/-.The identical issue has been decided by us in ITA No. ITA No. 1332/KOL/2024
A.Y. 2012-13 and same would be ,mutatis mutandis, applicable to this appeal as well. Consequently the appeal is allowed for statistical purpose.
ITA Nos.1332 & 1333/KOL/2024
SSL Consolidated Limited; A.Y. 2012-13 & 2013-14

(ACCOUNTANT MEMBER)

Kolkata, Dated: 01.04.2025
Sudip Sarkar, Sr.PS
Copy of the Order forwarded to :

Sr. Private Secretary/ Asst.