C.I.T. - II KOLKATA vs. VICKY INVESTMENT LTD.

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ITA/379/2004HC CalcuttaWBCHCO002864200422 September 2022Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE SUPRATIM BHATTACHARYA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court found no substantial question of law arising from the ITAT's order. Since the matter was remanded to the Assessing Officer for reconsideration, it was deemed appropriate to allow the AO to consider all points.

What were the facts?

The revenue appealed against an ITAT order that remanded the case back to the Assessing Officer for a fresh decision. The ITAT had relied on previous decisions where similar issues were decided in favour of the assessee.

What were the issues?

Whether the ITAT was justified in remanding the matter to the Assessing Officer without deciding the substantial question of law raised by the revenue regarding allowability of interest expenditure on loans used for acquiring shares against which dividend income is received.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

OD – 1 IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (INCOME TAX) ORIGINAL SIDE ITA/379/2004 C.I.T. – II KOLKATA VS. VICKY INVESTMENT LTD. BEFORE : THE HON’BLE JUSTICE T.S. SIVAGNANAM And THE HON’BLE JUSTICE SUPRATIM BHATTACHARYA Date : SEPTEMBER 22, 2022. Appearance: Ms. Smita Das De, Adv. …for appellant None appears …for respondent The Court :- This appeal has been filed by the revenue under Section 260A of the Income Tax Act, 1961 (the Act) challenging the order passed by the Income Tax Appellate Tribunal, “SMC” Bench, Kolkata (Tribunal) dated 28th July, 2003 in ITA No. 2398(Cal) of 2002 for the assessment year 1998-99. The revenue has raised the following substantial questions of law for consideration:- “Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was justified in law by not holding that the interest on loan utilised for purchase of acquiring share against which assessee received dividend is not an allowable expenditure on the ground that dividend income an income from other source and also no expenditure relating to the exempt income is allowable as deduction for determining the total income ?”

2 As per the office report the original case papers are not available and, therefore, on the direction issued by this Court the learned standing Counsel for appellant has submitted a photocopy of the same which shall be treated as original until the original case file is traced. The revenue being aggrieved by the order passed by the Tribunal has preferred this appeal. On perusal of the order passed by the Tribunal we find that the matter has been remanded to the assessing officer for a fresh decision. The learned Tribunal has pointed out that in the case of M/s. MAFATLAL HOLDINGS LTD. the Bombay Bench of the Tribunal has decided in favour of the assessee in ITA/2935/M/2002 and in the case of the Group Company of the assessee the Calcutta Bench of the Tribunal has decided the issue in favour of the assessee in ITA/1367/Kol/2002. Therefore, the learned Tribunal set aside the order passed by the COMMISSIONER OF INCOME TAX (APPEALS) and remanded the matter back to the assessing officer to decide the issue in the light of the decision mentioned above. In our considered view since the matter has been remanded it will be well open to the assessing officer to consider all points including the issue as to whether the decision referred to the learned Tribunal could apply to the facts of the case of the assessee. Therefore, we find that there is no substantial questions of law arising for consideration in this appeal. Accordingly, the appeal stands dismissed. (T.S. SIVAGNANAM, J.)

(SUPRATIM BHATTACHARYA, J.) Pkd/GH

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