M/S. CALCUTTA SPRINGS LTD.,KOLKATA vs. D.C.I.T., CC- 1(2), KOLKATA, KOLKATA
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Income Tax Appellate Tribunal, KOLKATA BENCH ‘C’, KOLKATA
Before: Dr. Manish Borad & Shri Sonjoy Sarma]
IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH ‘C’, KOLKATA [Before Dr. Manish Borad, Accountant Member & Shri Sonjoy Sarma, Judicial Member] I.T.A. No. 768/Kol/2022 Assessment Year : 2014-15 M/s. Calcutta Springs Ltd. vs DCIT, CC-1(2), Kolkata PAN: AAACC 9765 H Appellant Respondent Date of Hearing 20.02.2024 Date of Pronouncement 22.02.2024 For the Assessee Shri Siddharth Jhajharia, FCA For the Revenue Shri Sanjay Paul, Addl. CIT ORDER Per Sonjoy Sarma, JM: This appeal of the assessee directed against the order of ld. CIT(A), Kolkata-20 dated 12.12.2022 is arising out of the order u/s 154 of the Income Tax Act dated 01.02.2022 framed by ACIT, Central Circle-1(2), Kolkata.
Though the assessee has raised 6 grounds of appeal, the sole grievance is against the addition of Rs. 5,42,823/- computed u/s 14A of the Act for the purpose of computing book profit u/s 115JB of the Act.
At the outset, ld. counsel for the assessee submitted that an assessment was framed u/s 143(3) of the Act for A.Y. 2014-15 wherein disallowance u/s 14A of the Act was made. The matter travelled before the Hon’ble Tribunal and vide ITA No. 767/Kol/2022 dated 11.07.2023 the disallowance u/s 14A of the Act was deleted. He further submitted that since the disallowance u/s 14A has itself being deleted, the same cannot be considered for
2 ITA No. 768/Kol/2022 AY: 2014-15 M/s. Calcutta Springs Ltd. the purpose of computing book profit u/s 115JB of the Act. Copy of the order of Tribunal dated 11.07.2023 is placed on record.
On the other hand, ld. DR vehemently argued supporting the order of authorities below.
We after hearing the rival submissions of the parties and perused the material available on record. We notice that the assessing officer while passing the order u/s 154 of the Act computed the book profit u/s 115JB of the Act by adding disallowance of Rs. 5,42,823/- made u/s 14A of the Act.
We find that in the regular assessment proceedings u/s 143(3) the disallowance u/s 14A was made. However, since the assessee had not earned any dividend income during the year, This Tribunal placing reliance on the judgement of Hon’ble Delhi High Court in the case of Pr. CIT vs M/s. Era Infrastructure (India) Limited in ITA No. 204 of 2022 dated 20.07.2022 deleted the disallowance u/s 14A of the Act. Therefore, there is no basis for considering the alleged disallowance for computing book profit u/s 115JB of the Act in the proceedings carried out u/s 153A/143(3) of the Act. We thus set aside the ld. CIT(A) and delete the impugned addition.
Accordingly ground no. 1 to 4 are allowed.
As far as ground no. 5 is concerned raised against the charging of interest u/s 220(2) of the Act, since the disallowance itself is deleted no interest will be leviable on the alleged addition u/s 220(2) of the Act. Accordingly, ground no. 5 is also allowed.
3 ITA No. 768/Kol/2022 AY: 2014-15 M/s. Calcutta Springs Ltd. 9. Ground no. 6 is general and consequential in nature need not required to be adjudicated.
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 22.02.2024. Sd/- Sd/-
(Dr. Manish Borad) (Sonjoy Sarma) Accountant Member Judicial Member Dated: 22.02.2024 Biswajit, Sr. PS Copy of the order forwarded to: 1. Appellant – M/s. Calcutta Springs Ltd., C/o. M/s. Salarpuria Jajodia & Co., 7. C.R. Avenue, 3rd Floor, Kolkata-700072. 2. Respondent – DCIT, CC-1(2), Kolkata. 3. Ld. CIT 4. Ld. CIT(A) 5. Ld. DR True Copy By Order
Assistant Registrar ITAT, Kolkata Benches, Kolkata
