M/S. ARTLINE FINANCIAL MANAGEMENT PVT. LTD.,KOLKATA vs. ITO, WARD - 14(3), KOLKATA

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ITA 2129/KOL/2018Status: DisposedITAT Kolkata10 May 2019AY 2014-152 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the disallowance under Section 14A read with Rule 8D is not applicable in the absence of any exempt income. Therefore, the impugned disallowance was deleted.

What were the facts?

The assessee's appeal for AY 2014-15 concerned a disallowance made under Section 14A read with Rule 8D. The assessee had not derived any exempt income during the relevant assessment year.

What were the issues?

Whether disallowance under Section 14A read with Rule 8D can be made 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, “SMC” BENCH : KOLKATA

Before: Hon’ble Shri S.S. Godara, JM ]

ORDER Shri S.S. Godara, JM:

1.

This Assessee’s appeal for assessment year 2014-15 arises against the CIT(A), 14, Kolkata’s order dated 26-07-2018 passed in case no. 10274/CIT(A)-14/Wd- 14(3)/2016-17 involving proceedings u/s 143(3) of the I.T Act, 1961 (in short ‘Act’) . Heard learned Departmental Representative. Case file perused.

2.

Shri C.J. Singh, CIT, ld.DR strongly supported the lower authorities’ action in making disallowance u/s. 14A/R.W.R 8D of the I.T Rules, 1962. It transpires at the outset that assessee has not derived any exempt income. The hon’ble jurisdictional high court’s decision in Ashika Global Logistic Security Ltd., GA No. 2122 of 2014 dt. 11. 06.2018 holds that the impugned impugned disallowance does not apply in absence of any exempt income. I therefore delete the impugned disallowance as made on this count alone.

M/s. Artline Financial Management P.Ltd

3.

This Assessee’s appeal is allowed. Order pronounced in the Court on 10 -05-2019 Sd/- [ S.S.Godara ] Judicial Member Dated : 10 -05-2019 **PRADIP, Sr. PS Copy of the order forwarded to:

1. 1. Appellant/Assessee: M/s. Artline Financial Management P.Ltd D/70 Dinesh Nagar, 208/35/7/2/3, Kolkata-99.

2. Respondent/Department: Income Tax Officer, Ward 14(3), Kolkata 3..C.I.T(A).- 4. C.I.T.- Kolkata.

5. CIT(DR), Kolkata Benches, Kolkata.

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