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Income Tax Appellate Tribunal, KOLKATA ‘SMC’ BENCH, KOLKATA
Before: Sri J. Sudhakar Reddy
Assessment Year: 2013-14 Review Mercandise P. Ltd……...............….……...........…………..……………….…...……..….…….......Appellant C/o S.N. Ghosh & Associates, Advocates Seben Brothers’ Lodge P.O. Buroshibtala P.S. Chinsurah Dis. Hooghly – 712 105 [PAN : AAFCR 2003 N ] Vs. Income Tax Officer, Ward- 4(1), Kolkata.……........……….........…………..………….…............Respondent Appearances by: Shri Somnath Ghosh, Advocate, appeared on behalf of the assessee. Shri Nicholas Murmu, JCIT D/R. appearing on behalf of the Revenue. Date of concluding the hearing : November 28th, 2018 Date of pronouncing the order : December 12th, 2018 ORDER Per J. Sudhakar Reddy, AM :- This appeal filed by the assessee is directed against the order of the Learned Commissioner of Income Tax (Appeals)-2, Kolkata, (hereinafter the ‘Ld. CIT(A)’), dt. 09/05/2018, passed u/s 250 of the Income Tax Act, 1961 (hereinafter the ‘Act’), relating to Assessment Year 2013-14.
The sole issue that arises before us is the disallowance u/s 14A of the Act, made by the Assessing Officer and confirmed by the ld. CIT(A). After hearing rival contentions, we find that the undisputed fact as recorded by the Assessing Officer at page 2 of his order, is that the assessee has not earned any dividend income during the year. 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 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.
Assessment Year: 2013-14 Review Mercandise P. Ltd 3. Respectfully following the propositions of law laid down in these case-law to the facts of the case on hand, I delete the disallowance u/s 14A of the Act and allow this appeal of the assessee.
In the result, appeal of the assessee is allowed.
Kolkata, the 12th day of December, 2018.