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Income Tax Appellate Tribunal, KOLKATA BENCH “SMC” KOLKATA
Before: Shri S.S, Godara
This Revenue’s appeal for assessment year 2014-15, arises against the Commissioner of Income-tax (Appeals)-4, Kolkata’s order dated 25.04.2018 passed in case No.272/CIT(A)-4/16-17, involving proceedings u/s. 143(3) of the Income Tax Act, 1961; in short ‘the Act’. Heard learned senior departmental representative vehemently reiterating the Revenue’s pleadings. The assessee has not come present despite the fact that the registry has issued an RPAD notice dated 15.01.2019. It is accordingly proceeded ex parte.
The Revenue’s first substantive ground seeks to restore the Assessing Officer’s action deleting sec. 14A r.w.s. 8D disallowance of ₹151,25,417/- regarding assessee’s exempt income. It transpires at the outset that the assessee has not derived any exempt income in the impugned assessment year. Suffice to say, hon'ble juri ictional high
ITA No.1559/Kol/2018 A.Y. 2014-15 DCIT, Cir-12(1), Kol. Vs. M/s Medhawi Traders Ltd. Page 2 court in CIT vs. M/s Ashika Global Securities Ltd ITAT 100 of 2014 GA No.2122 of 2014 decided on 11.06.2018 holds that sec. 14A r.w.s. 8D disallowance provision does not apply in absence of exempt income. I therefore decline Revenue’s former substantive ground.
Next comes the Assessing Officer’s action treating assessee’s interest income on fixed deposit / refund amounting to ₹21,60,072/- as income from other sources than business income as reversed during the course of lower appellate proceedings. It has come on record that this assessee is an NBFC engaged in money lending / interest earning business. I conclude in these peculiar facts that the impugned interest income has rightly been treated as business income than income from other sources in the CIT(A)’s findings under challenge. The Revenue’s both substantive grounds stand declined accordingly.
This Revenue’s appeal is dismissed. Order pronounced in open court on 22/03/2019 (S.S. Godara) Judicial Member Kolkata, *Dkp/Sr.PS "दनांकः- 22/03/2019 कोलकाता आदेश क" ""त"ल"प अ"े"षत / Copy of Order Forwarded to:- 1. अपीलाथ"/Appellant-DCIT, Circle-12(1), P-7, Chowringhee Sq. 7th Fl, Kolkata-69
""यथ"/Respondent-M/s Medhawi Traders Ltd. 2/6, Sarat Bose Road, Minto Park, Kolkat-20 3. संबं"धत आयकर आयु%त / Concerned CIT 4. आयकर आयु%त- अपील / CIT (A) 5. &वभागीय ")त)न"ध, आयकर अपील"य अ"धकरण कोलकाता / DR, ITAT, Kolkata 6. गाड+ फाइल / Guard file. By order/आदेश से, सहायक पंजीकार आयकर अपील"य अ"धकरण, कोलकाता ।