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Income Tax Appellate Tribunal, “B(SMC
Before: Shri A. T. Varkey, JM]
This is an appeal preferred by the assessee against the order of Ld. CIT(A)-2, Kolkata dated 14-01-2019 for the assessment year 2015-16.
Ground number 1 & 2 are not pressed, so it stands dismissed. Further, the main grievance of assessee in this appeal is against the order of Ld. CIT(A) in dismissing the appeal of assessee without speaking on the merit of disallowance of Rs.2,67,763/- u/s. 14A of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) read with Rule 8D of the Income-tax Rules, 1962 (hereinafter referred to as the “Rules”).
The Ld. Counsel for the assessee has also brought to our notice that the ground no.3 is regarding the disallowance made by the AO applying section 14A Act read with Rule 8D of the Rules. According to Ld. Counsel, the assessee did not receive any exempt income, therefore, relying upon the decision of Hon’ble Calcutta High Court in the case of CIT Vs. M/s. Ashika Global Securities Ltd. in ITAT 100 of 2014, GA 2122 of 2014 dated 11.06.2018 contended that no disallowance u/s. 14A was warranted in the facts of the case and, therefore, the order of the AO/Ld. CIT(A) is erroneous.
4. After hearing the rival submissions and having gone through the facts and circumstances of the case we note that the AO taking note of the fact that the assessee has made investments which would earn exempt income, was of the opinion that sec. 14A read
Vantage Tradelinks Pvt. Ltd., AY- 2015-16 with Rule 8D is attracted in the instant case. And so, he applied Rule 8D read with sec. 14A to compute the disallowance, which he ought not to have done, since the assessee did not earn any exempt income, therefore, section 14A disallowance was not warranted, which view has been upheld by the Hon’ble Calcutta High Court in Ashika Global Securities Ltd. (supra) and, therefore, we direct deletion of the addition of Rs.2,67,763/-.
In the result, appeal of assessee is partly allowed. Order is pronounced in the open court on 4th December, 2019.
Sd/- (Aby. T. Varkey) Judicial Member
Dated :4th December, 2019 Jd.(Sr.P.S.) Copy of the order forwarded to:
Appellant – M/s. Vantage Tradelinks Pvt. Ltd., 244/6, F. No.145/F Block, Gali No. 1, School Mandawali, Delhi-110092. Respondent – ITO, Ward-5(4) , Kolkata. 2 3. CIT(A)-2, Kolkata (sent through e-mail)
CIT- , Kolkata.
5. DR, ITAT, Kolkata. (sent through e-mail)