DURGA PROJECTS INCORPORATION,KOLKATA vs. A.C.I.T.,CIRCLE-34, KOLKATA

We notice at the outset that both the learned lower authorizes have invoked section 14A disallowance involving proportionate interest and administrative expenses head(s) of Rs.6,27,824/- & Rs.75,000/-; respectively under 2nd and 3rd limb of Rule 8D(ii) of the Income Tax Rules. The assessee’s only case is that the impugned disallowance does not come into play in absence of exempt income derived in the relevant previous year. Hon’ble jurisidicitonal high court’s decision in CIT vs. Ashika Global Securities Ltd. ITA 100 of 2014 GA No.2122 of 2014 decided on 11.06.2018 holds that section 14A r.w.r. 8D does not apply in absence

After giving our thoughtful consideration to the foregoing sole issue raised in the instant lis, we deem it appropriate to restore the same back to the Assessing Officer for fresh factual verification since there is no clarity in the assessment findings as to whether the assessee had derived any exempt income or not. The assessee’s sole substantive grievance is restored to the file of Assessing Officer therefore.

This assessee’s appeal is allowed for statistical purposes in above terms.