DCIT, CENTRAL CIRCLE - 2(2), KOLKATA, KOLKATA vs. M/S. RESTORE MACHINES INDIA PVT. LTD., KOLKATA

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ITA 20/KOL/2018Status: DisposedITAT Kolkata09 January 2019AY 2011-123 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that no disallowance under Section 14A can be made if the assessee has no exempt income. Following jurisdictional High Court precedents, the CIT(A)'s finding was upheld.

What were the facts?

The Revenue filed appeals against the CIT(A)'s orders for AY 2011-12 and 2012-13. The assessee did not appear for the hearing.

What were the issues?

Whether disallowance under Section 14A is permissible when the assessee has no exempt income.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

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

Before: Sri J. Sudhakar Reddy & Sri S.S. Viswanethra Ravi

Heard together (2 matters)

I.T.A No. 20/Kol/2018
I.T.A No. 21/Kol/2018

Read from the judgment's own cause title. This page is filed under one of them.

Assessment Year: 2011-12 Assessment Year: 2012-13 Deputy Commissioner of Income Tax, Central Circle-2(2), Kolkata...........................……Appellant M/s. Restore Machines India Pvt. Ltd......................................……………………………............Respondent 4/1A, Jagmohan Mullick Lane Kolkata – 700 007 [PAN : AABCR 3530 L] Appearances by: None, appeared on behalf of the assessee. Shri Sankar Halder, CIT, Sr. D/R, appearing on behalf of the Revenue. Date of concluding the hearing : November 8th, 2018 Date of pronouncing the order : January 9th , 2019 ORDER Per J. Sudhakar Reddy, AM :-

Both these appeals filed by the revenue are directed against the identical orders of the Learned Commissioner of Income Tax (Appeals)-20, Kolkata, (hereinafter the “ld.CIT(A)”), passed u/s. 250 of the Income Tax Act, 1961 (the ‘Act’), dt. 10/10/2017, for the Assessment Year 2011-12 & 2012-13.

2.

As the issues arising in both these appeals are identical, for the sake of convenience they are heard together and disposed off by the way of this common order.

3. None appeared on behalf of the assessee despite issue of notice by RPAD. There was no application moved by the assessee for adjournment either. Under the circumstances we dispose of the case ex-parte on merits qua the assessee after hearing the ld. Departmental Representative.

4. Heard the ld. D/R. We find that there is no exempt income earned by the assessee during both the Assessment Years. When there is no income that is exempt from tax, no disallowance can be made u/s 14A of the Act, as held by the Hon’ble Jurisdictional High Assessment Year: 2011-12 Assessment Year: 2012-13 M/s. Restore Machines India Pvt. Ltd Court in the case of CIT vs. Ashika Global Securities Ltd. ITAT 100 of 2014, GA 2122 of 2014, judgment dt. 11/06/2018. The Hon’ble Delhi High Court in the case of Cheminvest Ltd. v. Commissioner of Income-tax-IV [2015] 378 ITR 33 (Delhi) has laid down a similar proposition of law.

3.

Respectfully following the propositions of law laid down in these case-law to the facts of the case on hand, I uphold the finding of the findings of the ld. CIT(A) and dismiss these appeals of the revenue.

4.

In the result, both the appeals of the revenue are dismissed.

Kolkata, the 9th day of January, 2019.

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