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

PDF · subscribers
ITA 158/KOL/2020Status: DisposedITAT Kolkata19 June 2020AY 2015-162 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue to the Assessing Officer for fresh factual verification. This was due to a lack of clarity on whether the assessee had derived any exempt income in the relevant year.

What were the facts?

The assessee's appeal for AY 2015-16 concerns a disallowance under Section 14A involving proportionate interest and administrative expenses. The assessee contended that Section 14A is not applicable in the absence of exempt income.

What were the issues?

The primary issue was whether Section 14A disallowance is applicable when the assessee has not earned any exempt income. The Tribunal sought factual verification to determine the presence of exempt income.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D”

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

For Appellant: Shri Manish Tiwari, CA
Hearing: 08/06/2020Pronounced: 19/06/2020

BEFORE SHRI P.M. JAGTAP, V.P & SHRI S. S. GODARA, JM आयकर अपीलसं./ (�नधा�रण वष� / Assessment Year: 2015-16) Durga Project Incorporation, Vs. ACIT, Circle-34, Kolkata Kolkata 16/1A, Abdul Hamid Street, 5th Floor, Kolkata-1. �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AAFFD0572M (Appellant) .. (Respondent) Appellant by : Shri Manish Tiwari, CA Respondent by : Shri Supriyo Pal, JCIT सुनवाईक�तार�ख/ Date of Hearing : 08/06/2020 घोषणाक�तार�ख/Date of Pronouncement : 19/06/2020 आदेश / O R D E R Per Shri S. S. Godara: This assessee’s appeal for assessment year 2015-16 arises against the Commissioner of Income Tax (A) - 10, Kolkata dated 13.12.2017 passed in Case No.CIT(A), Kolkata-10/10441/2017-18 involving proceedings u/s 143(3) of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused.

2.

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

Durga Project Incorporation, Kolkata of any such exempt income. Learned departmental representative on the other hand submitted that the instant sole issue requires factual verification at the Assessing Officer’s end.

3.

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.

4.

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

Order is pronounced in the open court on 19.06.2020.

More judgments on Section 14A

All 15,875 judgments and leading authorities on Section 14A →

Recent GST High Court judgments

Search GST case law →