DREAM DEALCOM PVT. LTD.,KOLKATA vs. I.T.O.WARD-6(1), KOLKATA

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ITA 1812/KOL/2019Status: DisposedITAT Kolkata08 January 2020AY 2011-122 pages
AI SummaryRemanded

What did the Tribunal hold?

The tribunal set aside the matter to the Assessing Officer to verify if the assessee earned any exempt income. If no exempt income was earned, no disallowance under Section 14A could be made, as per the jurisdictional High Court's ruling.

What were the facts?

The assessee filed an appeal with a delay of 85 days, which was condoned by the tribunal. The main issue was the disallowance made under Section 14A read with Rule 8D(iii) of the Income Tax Rules.

What were the issues?

Whether the disallowance under Section 14A read with Rule 8D(iii) is justified when the assessee has not earned any 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, KOLKATA ‘SMC’ BENCH, KOLKATA

Before: Sri J. Sudhakar Reddy

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘SMC’ BENCH, KOLKATA (Before Sri J. Sudhakar Reddy, Accountant Member) Assessment Year: 2011-12 Dream Dealcom Pvt. Ltd...............…………........................................................……………….…......Appellant C/o. RSVPC & Company 41A, AJC Bose Road Suite No. 613 6th Floor Kolkata – 700 017 [PAN : AADCD 4533 D] Vs. Income Tax Officer, Ward-6(1), Kolkata…………….....................................….………....…....Respondent Appearances by: Shri Vinod Kumar Jain, appeared on behalf of the assessee. Shri Jayanta Khanra, JCIT Sr. D/R, appearing on behalf of the Revenue. Date of concluding the hearing : December 10th, 2019 Date of pronouncing the order : January 8th, 2020 ORDER Per J. Sudhakar Reddy, AM :-

This appeal filed by the assessee is directed against the order of the Learned Commissioner of Income Tax (Appeals) – 2, Kolkata, (hereinafter the “ld.CIT(A)”), passed u/s. 250 of the Income Tax Act, 1961 (the ‘Act’), dt. 21/08/2017, for the Assessment Year 2011-12.

2.

At the outset we find that there is a delay of 85 (eighty five) days in filing of this appeal by the assessee. After perusing the petition for condonation, we are convinced that the assessee was prevented by sufficient cause from filing the appeal on time. Hence the delay is condoned and the appeal is admitted.

3.

The only issue that arises for our adjudication is whether the disallowance u/s 14A r.w.r. 8D (iii) of the Income Tax Rules, 1962 (‘Rules’), justified in law. The ld. CIT(A) has passed an ex-parte order. The ld. Counsel for the assessee submits that, no exempt income was earned during the year and hence no disallowance can be made u/s 14A r.w.r. 8D (iii). He relies on the judgement of the Hon’ble Jurisdictional High Court in the case of CIT vs. M/s. Ashika Global Securities Ltd. in ITAT 100 of 2014 & GA 2122 of 2014. 3.1. The ld. D/R submits that the fact whether the assessee has earned exempt income or not has to be verified.

Assessment Year: 2011-12 Dream Dealcom Pvt. Ltd.

4.

In view of the above submission, we set aside the matter to the file of the In view of the above submission, we set aside the matter to the file of the In view of the above submission, we set aside the matter to the file of the Assessing Officer with a direction to verify whether the assessee ha Assessing Officer with a direction to verify whether the assessee has earned any exempt s earned any exempt income during the year. If it has not earned any exempt income, then no disallowance income during the year. If it has not earned any exempt income, then no disallowance income during the year. If it has not earned any exempt income, then no disallowance can be made u/s 14A of the Act, has held by the Hon’ble Jurisdictional High Court in the can be made u/s 14A of the Act, has held by the Hon’ble Jurisdictional High Court in the can be made u/s 14A of the Act, has held by the Hon’ble Jurisdictional High Court in the case of Ashika Global Securities Ltd. (supra). Ashika Global Securities Ltd. (supra). result, appeal of the assessee is allowed for statistical purposes.

5.

In the result, appeal of the assessee is allowed for statistical purposes. result, appeal of the assessee is allowed for statistical purposes.

Kolkata, the Kolkata, the 8th day of January, 2020.

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