M/S. MACKELS VINCOM PRIVATE LIMITED ,HOWRAH vs. ITO, WARD - 1(3), KOLKATA , KOLKATA

This assessee’s appeal for assessment year 2011-12 arises against the order of the CIT(A)-1, Kolkata dated 15.06.2016 passed in case no. 120/CIT(A)-1/Ward-1(3)/2014- 15 affirming the Assessing Officer’s action making section 14A read with Rule 8D disallowance of Rs. 32,784/- in assessment order dated 26.03.2014 involving proceedings u/s 143(3) of the Income Tax Act, 1961 (in short the ‘ Act’).

I have heard learned Departmental Representative vehemently supporting both the lower authorities’ action invoking the impugned disallowance. It emerges at the outset that the assessee has not derived any exempt income in the impugned assessment year. Hon’ble jurisdictional high court’s decision in CIT vs. M/s Ashika Global Securities Ltd. in ITAT No. 100/2014 GA No. 2122 of 2014 dated 11.06.2018 holds that such a M/s Mackels Vincom Pvt. Ltd. A.Yr. 2011-12 disallowance in absence of exempt income is not sustainable. I, accordingly delete the impugned section 14A read with Rule 8D disallowance of Rs. 32,784/-.

This assessee’s appeal is allowed.