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

PDF · subscribers
ITA 1310/KOL/2018Status: DisposedITAT Kolkata26 September 2018AY 2011-122 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 a disallowance under Section 14A read with Rule 8D is not sustainable in the absence of any exempt income. Therefore, the impugned disallowance was deleted.

What were the facts?

The assessee's appeal was against a disallowance made under Section 14A read with Rule 8D. The Assessing Officer had disallowed Rs. 32,784. The assessee did not derive any exempt income in the impugned assessment year.

What were the issues?

Whether disallowance under Section 14A read with Rule 8D is permissible when no exempt income has been earned by the assessee.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH : KOLKATA

Before: Hon’ble Shri S.S. Godara, JM]

Hearing: 17.09.2018Pronounced: 26.09.2018
1.

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’).

2.

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/-.

3.

This assessee’s appeal is allowed.

Order pronounced in the Court on 26.09.2018

More judgments on Section 14A

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

Recent GST High Court judgments

Search GST case law →