RISHRA INVESTMENTS LTD.,KOLKATA vs. ITO, WARD 1(4), KOLKATA

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ITA 501/KOL/2020Status: DisposedITAT Kolkata22 October 2020AY 2014-152 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 accepted the assessee's argument that disallowances under Section 14A read with Rule 8D are not to be included for the purpose of computing Minimum Alternate Tax (MAT) under Section 115JB.

What were the facts?

The assessee challenged a disallowance made under Section 14A read with Rule 8D for the assessment year 2014-15. The assessee did not dispute the disallowance on merits but argued it should not be included for Section 115JB computation.

What were the issues?

Whether disallowances made under Section 14A r.w.r 8D should be included in the computation of MAT under Section 115JB.

Which sections of the Income-tax Act were involved?

Section 14A,Section 115JB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C”

Before: SHRI P. M. JAGTAP, V.P & SHRI S. S. GODARA, JM

For Appellant: Shri Subash Agarwal, Advocate
Hearing: 09/10/2020Pronounced: 22/10/2020

आदेश / O R D E R Per Shri S. S. Godara: This assessee’s appeal for assessment year 2014-15 arises against the Commissioner of Income-tax (Appeals)-6, Kolkata’s order dated 03.03.2020 passed in case No.CIT(A), Kolkata-6/10141/2018-19 involving proceedings u/s 143(3) of the Income Tax Act, 1961; (in short ‘the Act’). Heard both the parties. Case file persued. 2. The assessee’s petition dated 29.09.20 filed in the instant main appeal had prayed for an early hearing since the solitary issue raised therein challenging correctness of both the lower authorities’ action including section 14A r.w.r 8D disallowance of Rs.1,26,42,918/- for section 115JB MAT computation stated to be no more res integra. With the consent of both the parties, we therefore proceed to deal with the said sole issue itself whilst hearing the assessee’s aforesaid early hearing petition.

Rishra Investments Ltd.

3.

Coming to the main appeal we find that the assessee is not disputing section 14A r.w.r. 8D disallowance on merits. Its only case is that this tribunal’s special bench’s decision in ACIT vs. Vireet Investment Pvt. Ltd. 165 ITD 227 (Delhi) holds that such a disallowance does not deserve to be included for the purpose of finalizing section 115JB computation. This clinching aspect has gone unrebutted from the Revenue side. We therefore accept the assessee’s instant sole substantive grievance as well as the main appeal in ITA No.501/Kol/20.

4.

This assessee’s appeal is allowed in above terms.

Order is pronounced in the open court on 22.10.2020.

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