MOONTREE REALTORS PVT. LTD.,KOLKATA vs. ITO, WARD - 1(2), KOLKATA, KOLKATA

PDF · subscribers
ITA 1684/KOL/2018Status: DisposedITAT Kolkata05 December 2018AY 2013-142 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the assessee had no exempt dividend income during the assessment year, no disallowance under Section 14A was warranted. The disallowance was deleted based on the jurisdictional High Court's ruling.

What were the facts?

The assessee filed an appeal against the disallowance made under Section 14A of the Income Tax Act for AY 2013-14. There was a minor delay in filing the appeal, which was condoned by the Tribunal.

What were the issues?

The primary issue was whether disallowance under Section 14A is permissible when the assessee has no exempt income. The applicability of Section 14A in the absence of exempt income was examined.

Which sections of the Income-tax Act were involved?

Section 14A,Section 10,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘SMC’ BENCH, KOLKATA

Before: Sri J. Sudhakar Reddy]

Date of concluding the hearing : November 26th, 2018 Date of pronouncing the order : December 5th, 2018 O R D E R Per J. Sudhakar Reddy :-

This appeal filed by the assesse is directed against the order of the ld. Commissioner of Income Tax (Appeals)-1, Kolkata, (hereinafter the ‘ld. CIT (A)’), passed u/s 250 of the Income Tax Act, 1961 (the ‘Act’), dt. 16/05/2018, for the Assessment Year 2013-14.

2.

There is a delay of 04 days in filing of this appeal. After perusing the petition for condonation, we are convinced that the assessee was prevented by sufficient cause from filing this appeal on time. Hence the delay is condoned and appeal admitted.

3.

Only issue arising in this appeal for my consideration is disallowance made u/s 14A of the Act. 4. After hearing rival contentions, I find that it is not in dispute that the assessee has no income from dividends which is exempt u/s 10 of the Act, during the Assessment Year under consideration. Under these circumstances, there cannot be any disallowance u/s 14A of the Act, as held by the Hon’ble Jurisdictional High Court in the case of CIT vs. Ashika Global Securities Ltd. ITAT 100

Assessment Year: 2013-14 Moontree Realtors Pvt. Ltd of 2014, GA 2122 of 2014, judgment dt. 11/06/2018. Hence, I delete the disallowance in question and allow this appeal of the assessee. 5. Ground No. 1, is not pressed. 6. In the result, appeal of the assessee is allowed in part.

More judgments on Section 14A

All 15,875 judgments and leading authorities on Section 14A →

Recent GST High Court judgments

Search GST case law →