SCAN INFRASTRUCTURE LTD,KOLKATA vs. DCIT, CIRCLE-14(2), KOLKATA, KOLKATA

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ITA 684/KOL/2017Status: DisposedITAT Kolkata10 April 2018AY 2012-133 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the disallowance under Section 14A was already deleted by the CIT(A) in a separate appeal, the rectification order and the present appeal have become infructuous.

What were the facts?

The assessee sought rectification of a disallowance under Section 14A. The AO rectified the original order to add the disallowance, which was upheld by the CIT(A). Subsequently, another CIT(A) order deleted the entire disallowance made in the original assessment order.

What were the issues?

Whether an appeal against a rectification order becomes infructuous if the underlying disallowance is subsequently deleted by a higher appellate authority.

Which sections of the Income-tax Act were involved?

Section 14A,Section 154,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH (D

Before: Shri P.M. Jagtap, AM & Shri S.S. Viswanethra Ravi, JM]

order

: April 10, 2018 ORDER

PER P.M. JAGTAP, AM

1.

This appeal filed by the assessee is directed against the order of Ld. CIT(Appeals) – 5, Kolkata dated 30.11.2016 passed ex-parte whereby he upheld the order passed by the A.O. under section 154 rejecting rectification sought by the assessee on the issue of disallowance of Rs. 47,67,968/- under section 14A of the Act.

2.

I have heard the arguments of both the sides and also perused the relevant material available on record. As submitted by the learned counsel for the assessee, the disallowance under section 14A of the Act read with rule 8D was determined by the A.O. in the order originally passed under section 143(3) on 31.03.2015, but the same was not added by him in the tax calculation sheet. This mistake was subsequently rectified by the A.O. vide an order dated 22.05.2015 passed under section 154 and the appeal filed by the assessee against the said order was dismissed by the Ld. CIT(A) vide his impugned order passed ex-parte. The learned counsel for the assessee has submitted that the assessee meanwhile had filed an appeal against the order passed by the A.O. under section 143(3) disputing the determination of disallowance under section 14A read with rule 8D and while disposing of the same vide his appellate order dated 15.12.2017, the Ld. CIT(A) has already been deleted the entire disallowance of Rs. 47,67,968/- made by the A.O. under section 143(3). He has contended that as a result of the said relief allowed by the Ld. CIT(A) to the assessee, the order passed by the A.O. under section 154 as well as the entire proceedings emanating from the same including this appeal filed by the assessee before the Tribunal has become infructuous. The learned DR has also not disputed this position clearly evident from documentary evidence placed by the learned counsel for the assessee on record including the copy of order of the Ld. CIT(A)dated 15.12.2017. This appeal of the assessee filed before the Tribunal thus has become infructuous and is liable to be dismissed. We order accordingly.

3.

In the result, the appeal of the assessee is dismissed. Order Pronounced in the Open Court on 10th April, 2018.

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