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Income Tax Appellate Tribunal, KOLKATA BENCH “SMC” KOLKATA
Before: Shri S.S, Godara
This assessee’s appeal for assessment year 2013-14, arises against the Commissioner of Income-tax (Appeals)-4, Kolkata’s order dated 19.04.2018 passed in case No.186/CIT(A)-4/C-12(3)/16-17 involving proceedings u/s. 143(3) of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused.
It emerges at the outset that assessee’s sole substantive ground pleaded in the instant appeal challenges correctness of CIT(A)’s order confirming Assessing Officer’s action disallowing administrative expense u/s 14A r.w.s Rule 8D(2)(iii) of the Income Tax Rule, 1962 amounting to ₹1,39,682/- @ 0.5% average value of investments. Suffice to say, it transpires during the course of hearing that assessee had not claimed any administrative expenditure at all as per its computation forming part
ITA No.1124/Kol/2018 A.Y. 2013-14 Sh Rajiv Mundhra Vs. DCIT, Cir-12(2),Kol. Page 2 of the case file. This clinching fact forms sufficient reason for me to hold that the impugned disallowance provision sec. 14A r.ws. 8D(2)(iii) does not apply in absence of any actual expenditure being claimed at the assessee’s behest. I therefore, delete the impugned disallowance for this precious reason alone as purpose of said statutory provision is to disallow only the expenditure actually incurred. The assessee succeeds in his sole substantive grievance therefore.
This assessee’s appeal is allowed. Order pronounced in open court on 31/01/2019 (S.S. Godara) Judicial Member Kolkata, *Dkp/Sr.PS "दनांकः- 31/01/2019 कोलकाता आदेश क" ""त"ल"प अ"े"षत / Copy of Order Forwarded to:- 1. अपीलाथ"/Appellant-Shri Rajiv Mundhra, 126, Southern Avenue, Kolkata-29
""यथ"/Respondent-DCIT, Circle-12(2), Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-69 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, // उप/सहायक पंजीकार आयकर अपील"य अ"धकरण, कोलकाता ।