ITO, WARD - 5(4), KOLKATA, KOLKATA vs. M/S. HARSHRATNA FINANCE & INVESTMENT PVT. LTD., KOLKATA

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ITA 2185/KOL/2017Status: DisposedITAT Kolkata19 January 2018AY 2013-143 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 upheld the CIT(A)'s order, finding no infirmity. The disallowance under Section 14A was not permissible as no exempt income was received or receivable by the assessee.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order for AY 2013-14. The CIT(A) had followed a Delhi High Court judgment regarding disallowance under Section 14A.

What were the issues?

Whether disallowance under Section 14A is permissible when no exempt income is earned. The applicability of the Delhi High Court's decision in Cheminvest Ltd. was also a key consideration.

Which sections of the Income-tax Act were involved?

Section 14A,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘SMC’ BENCH, KOLKATA

Before: Sri J. Sudhakar Reddy]

Income Tax Officer Ward-5(4), Kolkata.…...……….……………….…………….…….……...Appellant P-7, Chowringhee Square 8th Floor Kolkata – 700 069 M/s. Harshratna Finance & Investment Pvt. Ltd.……………..……………………..…. Respondent 2, Lal Bazar Street Kolkata – 700 001 [PAN : AAACV 7427 R] Appearances by: Shri V.K.Jain, FCA, appeared on behalf of the assessee. Shri Pijush Mukherjee, Addl. CIT, DR appearing on behalf of the Revenue. Date of concluding the hearing : January 15th, 2017 Date of pronouncing the order : January 19th, 2018

O R D E R Per J. Sudhakar Reddy :-

This appeal filed by the revenue 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. 11/07/2017, for the Assessment Year 2013-14.

2.

There is a delay of 12 days in filing of the appeal in time. After perusing the petition for condonation filed, I am convinced that the appellant was prevented by sufficient cause from filing this appeal in time. Hence we condone the delay and admit this appeal.

3.

After hearing rival contentions, I find that the ld. First Appellate Authority has followed the judgement of the Hon’ble Delhi High Court in the case of M/s. Cheminvest Ltd. Vs. Commissioner of Income Tax, order dt. 02/09/2015, wherein it is held that if no exempt income is received or receivable

Assessment Year: 2013-14 M/s. Harshratna Finance & Investment Pvt. Ltd during the impugned assessment year, no disallowance can be made u/s 14A of the Act. I find no infirmity in this order of the ld. CIT(A) and uphold the same.

4.

In the result, this appeal of the revenue is dismissed. Kolkata, the 19th day of January, 2018.

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