HOOGHLY JUTE MILLS (VIZIANAGARAM) PVT. LTD.,KOLKATA vs. ITO, WARD - 5(4), KOLKATA, KOLKATA

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ITA 1532/KOL/2018Status: DisposedITAT Kolkata09 November 2018AY 2014-152 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 no disallowance under Section 14A is permissible when there is no exempt income. This decision was based on the jurisdictional High Court's ruling.

What were the facts?

The assessee had no income from dividends, which are exempt under Section 10 of the Income Tax Act. Despite this, a disallowance was made under Section 14A.

What were the issues?

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

Which sections of the Income-tax Act were involved?

Section 10,Section 14A

AI-generated summary — verify with the full judgment below

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

Before: Sri J. Sudhakar Reddy

Assessment Year: 2014-15 Hooghly Jute Mills (Vizianagaram) Pvt. Ltd…..……..……………………...……..….…….........Appellant 134/4, M.G. Road Kolkata – 700 007 [PAN : AACCH 2333 Q] Vs. Income Tax Officer, Ward-5(4), Kolkata…………………………….………….…..……............Respondent Appearances by: Shri Miraj D. Shah, FCA, appeared on behalf of the assessee. Shri Sankar Halder, JCIT, Sr. D/R. appearing on behalf of the Revenue. Date of concluding the hearing : October 29th , 2018 Date of pronouncing the order : November 9th , 2018 ORDER Per J. Sudhakar Reddy, AM :-

This is an appeal filed by the assessee directed against the order of the Commissioner of Income Tax (Appeals)–19, Kolkata (hereinafter the ‘Ld. CIT(A)’), passed u/s 250 of the Income Tax Act, 1961 (hereinafter the ‘Act’), dt. 04/06/2018, relating to Assessment Year 2014-15.

2. 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 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.

3.

In the result, appeal of the assessee is allowed.

Kolkata, the 9th day of November, 2018. Sd/- [J. Sudhakar Reddy] Accountant Member Dated : 09.11.2018 {SC SPS}

Assessment Year: 2014-15 Hooghly Jute Mills (Vizianagaram) Pvt. Ltd Copy of the order forwarded to: 1.Hooghly Jute Mills (Vizianagaram) Pvt. Ltd 134/4, M.G. Road Kolkata – 700 007

2.

Income Tax Officer, Ward-5(4), Kolkata 3. CIT(A)- 4. CIT- , 5. CIT(DR), Kolkata Benches, Kolkata.

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