I.T.O.,WARD-1(4), KOLKATA vs. M/S NEELANCHAL MERCANTILE PVT. LTD., KOLKATA

The present appeal has been preferred by the Revenue against the order dated 14.11.2019 of the Commissioner of Income Tax (Appeals)-7, Kolkata (hereinafter referred to as ‘CIT’) passed u/s 143(3) of the Income Tax Act. No one has put in appearance on behalf of the assessee. However, after going 2. through the impugned order and the available records on the file and after hearing the ld. DR, we proceed to adjudicate the appeal. 3. The sole issue involved in the appeal is relating to disallowance made by the Assessing Officer u/s 14A r.w. Rule 8D in respect disallowance of expenditure on tax exemption income of the assessee. 4. A perusal of the impugned order of the ld. CIT(A) reveals that the ld. CIT(A) while relying upon the decision of the Hon’ble Supreme court in the cases of PCIT vs. State Bank of Patiala [(2017) 78 taxmann.com 3(SC)] and Maxopp Investment Ltd. vs. CIT [(2018) 91 taxmann.com 154(SC)] has restricted the disallowance to the extent of M/s Neelanchal Mercantile Pvt. Ltd Assessment Year: 2012-13 tax exempt dividend income earned by the assessee. The ld. DR could not point out any contrary decision in this respect. In view of this, we do not find any infirmity in the order of the ld. CIT(A) and the same is upheld and the appeal of the Revenue is hereby dismissed.

In the result, the appeal of the Revenue is dismissed. Kolkata, the 26th October, 2021. Sd/- Sd/- [Manish Borad] [Sanjay Garg] Accountant Member Judicial Member Dated: 26.10.2021. RS Copy of the order forwarded to: 1. ITO, Ward-1(4), Kolkata 2. M/s Neelanchal Mercantile Pvt. Ltd 3. CIT(A)- 4. CIT- , 5. CIT(DR),