JCIT, (OSD), CIR-2(1), KOLKATA, KOLKATA vs. M/S INFINITY INFOTECH PARKS LTD., KOLKATA

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ITA 1040/KOL/2016Status: DisposedITAT Kolkata14 May 2018AY 2012-20132 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 since the assessee did not earn any exempt income, the disallowance made by the Assessing Officer under Rule 8D was unjustified. The CIT(A) was justified in deleting the disallowance.

What were the facts?

The revenue appealed against the deletion of a disallowance made under Rule 8D. The disallowance was for Rs. 75,24,948/-. The assessee did not earn any exempt income during the assessment year.

What were the issues?

Whether disallowance under Rule 8D is permissible when the assessee has not earned any exempt income.

Which sections of the Income-tax Act were involved?

Rule 8D

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH: KOLKATA

Hearing: 13.02.2018Pronounced: 14.05.2018

Per Shri A.T.Varkey, JM

1.

1. This appeal preferred by the revenue against the order of Ld. CIT(A)-1, Kolkata dated 10.03.2016 for AY 2012-13.

2.

At the outset, we notice the only issue that has been raised by the revenue as against the action of the Ld. CIT(A) in deleting the disallowance of Rs.75,24,948/- by invoking Rule 8D of the Income-tax Rules, 1962. We note that the similar disallowance was made by the AO for AY 2009-10 which has been deleted by the Ld. CIT(A) by order dated 13.06.2012. Against the said action of Ld. CIT(A), the department preferred an appeal before this Tribunal, which was listed on the same day (13.02.2018) before “C” Bench, wherein the author of this order heard the matter with another member and vide order dated 14.05.2018 itself has confirmed the action of the Ld. CIT(A) and dismissed this ground of Revenue. Similar facts and law permeates in this assessment year also. We note that the assessee did not earn any exempt income during the AY 2012-13, therefore, on the same reasoning given for AY 2009-10, we hold the Ld. CIT(A) was justified in deleting the disallowance as made by the AO in the assessment order by invoking Rule 8D of the I. T. Rules. Appeal of revenue is dismissed.

3.

In the result, the appeal of revenue is dismissed.

Order is pronounced in the open court on 14th May, 2018. Sd/- Sd/- (M. Balaganesh) (A. T. Varkey) Accountant Member Judicial Member

Dated: 14th May, 2018 Jd.(Sr.P.S.)

Copy of the order forwarded to:

1.

Appellant - JCIT (OSD), circle-2(1), Kolkata. 2 Respondent – M/s. Infinity Infotech Parks Ltd., Plot A-3, Block GP, Infinity Towers, Sector-V, Salt Lake, Kolkata-700 091.

3. The CIT(A) Kolkata

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