M/S IMC LTD.,KOLKATA vs. DCIT, CIR-11, KOLKATA, KOLKATA

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ITA 1123/KOL/2015Status: DisposedITAT Kolkata17 November 2017AY 2005-20062 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 Rule 8D is not applicable for assessment years prior to 2008-09. Therefore, the disallowance made under Section 14A by applying Rule 8D for AY 2005-06 was bad in law.

What were the facts?

The assessee's appeal was against the disallowance made by the Assessing Officer under Section 14A of the Income Tax Act. The CIT(A) had confirmed this disallowance by applying Rule 8D.

What were the issues?

The applicability of Rule 8D for assessment years prior to 2008-09 in the context of disallowance under Section 14A.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, KOLKATA BENCH ‘B’ KOLKATA

Before: Shri J. Sudhakar Reddy, AM & Shri S.S. Viswanethra Ravi, JM]

Per J. Sudhakar Reddy, AM This is an appeal filed by the assessee directed against the order of Commissioner of Income Tax (Appeals) – 10, Kolkata dated 12.06.2015 for the assessment year 2005-06. 2. The sole issue agitated by the assessee in this appeal is the disallowance made by the A.O. under section 14A of the Income Tax Act, 1961 (Act). The Ld. CIT (A) has confirmed the disallowance by applying Rule 8D. It is now settled that Rule 8D is not applicable prior to the assessment year 2008-09. I rely on the judgment of Hon’ble Bombay High Court in the case of Godrej & Boyce Manufacturing Co. Ltd. 328 ITR 81. 2 Assessment Year: 2005-06 M/s. I.M.C. Ltd.

3.

Hence this disallowance made under section 14A by applying Rule 8D of I.T. Rule 1962 for A.Y. 2005-06 is bad in law.

4.

In the result, the appeal of the Assessee is allowed. Order Pronounced in the Open Court on 17th November, 2017. (S.S. Viswanethra Ravi) ACCOUNTANT MEMBER Dated: 17/11/2017 Biswajit, Sr. PS Copy of order forwarded to:

1.

M/s. IMC Ltd., 232/A, A.J.C. Bose Road, Kolkata – 700020. 2. DCIT, Circle 11, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata – 700069. 3. The CIT(A)

4.

The CIT

5.

DR, By order, Sr. P.S. / H.O.O. ITAT, Kolkata

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