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Income Tax Appellate Tribunal, KOLKATA ‘SMC’ BENCH, KOLKATA
Before: Sri J. Sudhakar Reddy]
order : March 14th, 2018 O R D E R Per J. Sudhakar Reddy :- This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals)-2, Kolkata, (hereinafter the ‘ld. CIT (A)’), passed u/s 250 of the Income Tax Act, 1961 (the ‘Act’), dt. 25/09/2017.
The only issue that has to be adjudicated is whether the disallowance u/s 14A, can be made when the assessee has no dividend income.
Heard rival contentions. We find that the Hon’ble Delhi High Court in the case of Cheminvest Pvt. Ltd. vs CIT (2009) 317 ITR 86, while dealing with an identical issue held as follows:- “No disallowance u/s 14A can be made in a year in which no exempt income has been earned or received by the assessee. S. 14A also does not apply to shares bought for strategic purposes”
Respectfully following the same, we delete the addition made by the Assessing Officer and confirmed by the ld. CIT(A) u/s 14A of the Act and allow this appeal of the assessee.
In the result, appeal of the assessee is allowed. Kolkata, the 14th day of March, 2018 Sd/- [J. Sudhakar Reddy] Accountant Member Dated :14.03.2018 {SC SPS}
Assessment Year: 2011-12 Gangotri Sales Pvt. Ltd Copy of the order forwarded to: 1. Gangotri Sales Pvt. Ltd 5/1, Clive Row 2nd Floor Room No. 54 Kolkata – 700 001 2. Income Tax Officer Ward-6(4), Kolkata Aayakar Bhawan Kolkata – 700 069 3. CIT(A)- 4. CIT- , 5. CIT(DR), Kolkata Benches, Kolkata.