BDG METAL & POWER LIMITED,KOLKATA vs. D.C.I.T,CIRCLE-3(1), KOLKATA

“1. That on the facts and circumstances of the case, the order passed by the Learned Commissioner of Income Tax (Appeals) - 7, Kolkata was wrong and against the fact of the case.

None appeared on behalf of the assessee. The ld. Counsel for the assessee has filed an application seeking adjournment. The same is rejected as, in our view, this is not a fit case for grant of adjournment. Under these circumstances, we Assessment Year: 2012-13 BDG Metal & Power Limited dispose off the case ex-parte parte qua the assessee after hearing the ld. Departmental hearing the ld. Departmental Representative.

Heard the ld. D/R.

Ground Nos. 1 & 4 are general in nature. Ground Nos. 1 & 4 are general in nature.

Ground No. 2 is on the disallowance made u/s 40(a)(ia) of the Act. We find Ground No. 2 is on the disallowance made u/s 40(a)(ia) of the Act. We find Ground No. 2 is on the disallowance made u/s 40(a)(ia) of the Act. We find that the ld. CIT(A) has stated that Kolkata Port Trust is assessed that the ld. CIT(A) has stated that Kolkata Port Trust is assessed under Circle under Circle-35, Kolkata with PAN No. AAJK 0361 L, and hence, the second proviso to Section Kolkata with PAN No. AAJK 0361 L, and hence, the second proviso to Section Kolkata with PAN No. AAJK 0361 L, and hence, the second proviso to Section 40(a)(ia) of the Act, comes into play. 40(a)(ia) of the Act, comes into play. 5.1. Under these circumstances, we set aside this matter to the file of the Under these circumstances, we set aside this matter to the file of the Under these circumstances, we set aside this matter to the file of the Assessing Officer for fresh adjudication, in acco Assessing Officer for fresh adjudication, in accordance with law. The Assessing he Assessing Officer shall examine as to as to whether Kolkata Port Trust, has offered to tax the whether Kolkata Port Trust, has offered to tax the income from the lease rent payments in question, while filing its return of income income from the lease rent payments in question, while filing its return of income income from the lease rent payments in question, while filing its return of income for the impugned Assessment Year. for the impugned Assessment Year. If so, then the question of disallowance u/s isallowance u/s 40(a)(ia) of the Act, does not arise in view of the second proviso to that Section. 40(a)(ia) of the Act, does not arise in view of the second proviso to that Section. 40(a)(ia) of the Act, does not arise in view of the second proviso to that Section. The assessee is directed to co The assessee is directed to co-operate in the assessment proceedings.

Ground No. 3 is consequential in nature and hence it is also set aside to the Ground No. 3 is consequential in nature and hence it is also set aside to the Ground No. 3 is consequential in nature and hence it is also set aside to the file of the Assessing Officer and allowed for statistical purposes. of the Assessing Officer and allowed for statistical purposes.

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