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Income Tax Appellate Tribunal, KOLKATA ‘D’ BENCH, KOLKATA
Before: Sri P.M. Jagtap, Vice- & Sri S.S. Viswanethra Ravi]
IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘D’ BENCH, KOLKATA [Before Sri P.M. Jagtap, Vice-President & Sri S.S. Viswanethra Ravi, Judicial Member] Assessment Year: 2013-14 Deputy Commissioner of Income Tax, Circle-6(1), Kolkata...........……...……………………..…….. Appellant Vs. M/s. ISG Traders Ltd…………………………………............................…………………….…….….......…........Respondent 31, N.S. Road Kolkata – 700 001 [PAN : AABCI 1355 C] Appearances by: Shri G.A. Seshan, A/R, appeared on behalf of the assessee. Shri Shankar Halder, JCIT, Sr. DR appearing on behalf of the Revenue. Date of concluding the hearing : March 4th, 2019 Date of pronouncing the order : March 13th , 2019 O R D E R Per S.S. Viswanethra Ravi, JM :-
This is an appeal filed by the assessee directed against the order of the ld. Commissioner of Income Tax (Appeals)-2, Kolkata, (hereinafter the ‘ld. CIT (A)’), dt. 08/05/2018, passed u/s 250 of the Income Tax Act, 1961 (the ‘Act’), relating to the Assessment Year 2013-14.
Ground No. 1 & 2, are regarding the confirmation of disallowance made under Rule 8D(2)(iii) of the Income Tax Rules, 1962 (Rules) r.w.s. 14A of the Act.
Heard both parties and perused the material available on record. It is noted from the impugned order at page no. 4, the ld. CIT(A) directed the Assessing Officer to recalculate the disallowance of those shares which has yielded dividend income by placing reliance on the judgment of Jurisdictional ITAT in the case of REI Agro Ltd. vs. DCIT (144 ITD 141). We find that the Assessing Officer considered the average value of all the investments held by the assessee as on 31/03/2012 and 31/03/2013 for the purpose of computing disallowance u/s 14A of the Act by invoking the method as contemplated in Rule 8D of the Rule. It is needless to say that this Tribunal held that the disallowance of expenditure can be made only to those shares which yielded exempt income for the purpose of computing Assessment Year: 2013-14 M/s. ISG Traders Ltd disallowance u/s 14A of the Act and said finding was confirmed by the Hon’ble Jurisdictional High Court of Calcutta. Therefore, we find no infirmity in the order of the ld. CIT(A) and it is justified. Accordingly, Ground No. 1 & 2 of the revenue in this regard are dismissed.
4. Ground No. 3 is relating to deletion of an addition made on account of non- payment of ESI & PF, within the due date in the facts and circumstances of the case.
Heard both parties and perused the material available on record. The ld. CIT(A) examined the record and found that the payments in respect of ESI & PF were made before the due date of filing of the return of income and deleted the addition made by the Assessing Officer by placing reliance on the judgment of the Hon’ble High Court of Calcutta in the case of Commissioner of Income-tax, Circle -I, Kolkata v. Vijay Shree Ltd. [2014] 43 taxmann.com 396 (Calcutta). The law is very well settled that if the payments concerning the ESI & PF were deposited before the due date of filing the return of income then no addition can be made. The ld. D/R, did not controvert the same. Thus we find no infirmity in the order of the ld. CIT(A) and it is justified. Accordingly, Ground No. 3 of the revenue is dismissed.
In the result, appeal of the revenue is dismissed.
Kolkata, the 13th day of March, 2019. Sd/- Sd/- [P.M. Jagtap] [S.S. Viswanethra Ravi] Vice President Judicial Member Dated : 13.03.2019 {SC SPS} Assessment Year: 2013-14 M/s. ISG Traders Ltd Copy of the order forwarded to: 1. M/s. ISG Traders Ltd 31, N.S. Road Kolkata – 700 001 2. Deputy Commissioner of Income Tax, Circle-6(1), Kolkata 3. CIT(A)- 4. CIT- , 5. CIT(DR), Kolkata Benches, Kolkata.