M/S. ANGELA HOLDINGS PVT. LTD., ,KOLKATA vs. ITO, WARD - 4(3), , KOLKATA

This appeal filed by assessee is against the order of Ld. CIT(A) - 2, Kolkata dated 16.08.2018 for AY 2013-14.

At the outset itself, it has been brought to our notice that the Ld. CIT(A) has passed an ex parte order dated 16.08.2018 though the date fixed was 13.08.2018. According to Ld. AR, the date fixed for hearing though was on 13.08.2016 the Ld. AR of the assessee wrongly written in his diary the date as 16.08.2018. Therefore, the Ld. AR presented himself before the Ld. CIT(A) on 16.08.2018 wherein he was told that the appeal has already been disposed of before he came to the office on the same day. So, there is a violation of Natural Justice. However, the Ld. AR brought to our notice that the issue involved is 14A disallowance. According to Ld. AR, the assessee was not in receipt of any exempt income. So, no disallowance u/s. 14A read with Rule 8D should be invoked. According to Ld. AR, even if any disallowance is to be made then the disallowance should not exceed the exempt income as held in the case of REI Agro Ltd. Vs. DCIT 144 ITD 141.