REI Agro Ltd. v. DCIT

DCIT, Cir-5(1), Kolkata vs. M/S Coal India Ltd., Kolkata

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

…Hon'ble Courts in the aforementioned decisions.” 7.6 It is also submitted that the provisions of section 14A of the Act is not automatic and mechanical and, in this regard, reliance has been placed upon the following decisions: a. CIT vs. REI Agro Ltd [2013] 144 ITD 141 (Kolkata -Trib.) b. DCIT v. Ashish Jhunjhunwala (I.Τ.Α No. 1809/Kol/2012) c. Balarampur Chini Mills Ltd vs. DCIT [2012] 20 taxmann.com 117 (Kolkata) d. Relaxo Footwear Ltd. v. ACIT [(2012) 50 SOT 102 (Del ITAT) e. West Bengal Infrastructure Development Finance Corporation Ltd [2023] 149 taxmann.com 181 (Calcutta) f. Maruti Udyog Ltd. v. DCIT (200…

M/S Coal India Ltd., Kolkata vs. DCIT, Cir-5(1), Kolkata

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

…Hon'ble Courts in the aforementioned decisions.” 7.6 It is also submitted that the provisions of section 14A of the Act is not automatic and mechanical and, in this regard, reliance has been placed upon the following decisions: a. CIT vs. REI Agro Ltd [2013] 144 ITD 141 (Kolkata -Trib.) b. DCIT v. Ashish Jhunjhunwala (I.T.A No. 1809/Kol/2012) c. Balarampur Chini Mills Ltd vs. DCIT [2012] 20 taxmann.com 117 (Kolkata) d. Relaxo Footwear Ltd. v. ACIT [(2012) 50 SOT 102 (Del ITAT) e. West Bengal Infrastructure Development Finance Corporation Ltd [2023] 149 taxmann.com 181 (Calcutta) f. Maruti Udyog Ltd. v. DCIT (200…

DCIT, Circle - 5(1), Kolkata vs. M/S. Coal India Limited, Kolkata

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

…Hon'ble Courts in the aforementioned decisions.” 7.6 It is also submitted that the provisions of section 14A of the Act is not automatic and mechanical and, in this regard, reliance has been placed upon the following decisions: a. CIT vs. REI Agro Ltd [2013] 144 ITD 141 (Kolkata -Trib.) b. DCIT v. Ashish Jhunjhunwala (I.Τ.Α No. 1809/Kol/2012) c. Balarampur Chini Mills Ltd vs. DCIT [2012] 20 taxmann.com 117 (Kolkata) d. Relaxo Footwear Ltd. v. ACIT [(2012) 50 SOT 102 (Del ITAT) e. West Bengal Infrastructure Development Finance Corporation Ltd [2023] 149 taxmann.com 181 (Calcutta) f. Maruti Udyog Ltd. v. DCIT (200…

D.C.I.T Cir - 10(1), Kolkata vs. M/S Eureka Forbs Ltd, Kolkata

The appeal is dismissed

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

…ule 8D(2)(ii) and the same is directed to be deleted. 5. The Ld. AO has further disallowed 0.5% of the average investments amounting to Rs.36,19,296/- by invoking Rule 8D(2)(iii). It is noted that the Hon'ble ITAT, Kolkata in the case of REI Agro Ltd Vs ACIT (144 ITD 141) has held that 0.5% of dividend bearing investments should be alone be considered i.e. investments from where dividends were actually received by the appellant for the purposes of Rule 8D(2)(iii).Respectfully following the aforesaid decision, the Ld. AO is directed to re-compute the disallowance under the third limb of Rule 8D(2)(iii) by consider…

D.C.I.T Cir - 10(1), Kolkata vs. M/S Eureka Forbs Ltd, Kolkata

The appeal is dismissed

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

…ule 8D(2)(ii) and the same is directed to be deleted. 5. The Ld. AO has further disallowed 0.5% of the average investments amounting to Rs.36,19,296/- by invoking Rule 8D(2)(iii). It is noted that the Hon'ble ITAT, Kolkata in the case of REI Agro Ltd Vs ACIT (144 ITD 141) has held that 0.5% of dividend bearing investments should be alone be considered i.e. investments from where dividends were actually received by the appellant for the purposes of Rule 8D(2)(iii).Respectfully following the aforesaid decision, the Ld. AO is directed to re-compute the disallowance under the third limb of Rule 8D(2)(iii) by consider…

Basant Properties Limited, Kolkata vs. A.C.I.T., Circle - 5(1), Kolkata

In the result, the appeal filed by the assessee is allowed

Bench: Shri Rajesh Kumar (Accountant Member), Shri Pradip Kumar Choubey (Judicial Member)

…the disallowance as per Rule 8D by taking into consideration only those shares which have yielded dividend income in the year under consideration. Though the Tribunal has noted the decision of the Tribunal in REI Agro Ltd. v. Dy. CIT [2013] 35 taxmann.com 404/144 ITD 141 (Kol. - Trib.), there are several other decisions on the said point and the machinery provision under rule 8D can be applied only with regard to the shares which yielded dividend income in the year under consideration. Therefore, we find that the tribunal rightly applied the legal principle and granted relief. Accordingly, the substantial questio…

Srivaru Agro Pvt. Ltd. (Successor to Manoj Mercantile Credit Pvt. Ltd.), Kolkata vs. A.C.I.T., CC-1(4), Kolkata

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishra

…[2021] 10 SCC 153 (SC) before the Ld. CIT(A) and also submitted that Hon'ble Supreme Court has held that no disallowance can be made when own funds are higher than the investments made. The assessee relied upon several other citations, namely REI Agro v DCIT 144 ITD 141 (ITAT, Kolkata Bench), which order has been upheld by the Hon'ble Calcutta High Court. The assessee was earlier Manoj Mercantile Credit Pvt. Ltd. which had merged as per the Merger Scheme by the NCLT. The Ld. CIT(A) granted relief on the ground that the disallowance should have been restricted for the investment which yielded dividend income. How…

Nagreeka Foils Ltd., Kolkata vs. D.C.I.T., Circle - 3, Kolkata

In the result, all the three appeals filed by the assessee for AYs

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

…आयकर अपीलीय अधिकरण कोलकाता 'बी' पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘B’ BENCH, KOLKATA श्री प्रदीप कुमार चौबे, न्याधयक सदस्य एवं श्री राकेश धमश्रा, लेखा सदस्य के समक्ष Before SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER I.T.A. Nos.: 1788, 1930 & 1789/KOL/2024 Assessment Years: 2010-11, 2011-12 & 2013-14 D.C.I.T., Circle-3(1), Kolkata Nagreeka Foils Ltd. D.C.I.T., Circle-3, Kolkata Vs. D.C.I.T., Circle-6(3), Kolkata (Appellant) (Respondent) PAN: AAACN8548H Appearances: Assessee represented by : Akshay Ringasia. CA. Department represented by : Kapil Ma…

Nagreeka Foils Ltd., Kolkata vs. D.C.I.T., Circle - 6(3), Kolkata

…I.T.A. Nos.: 1788, 1930 & 1789/KOL/2024 AYs: 2010-11, 2011-12 & 2013-14 Nagreeka Foils Ltd. orders u/s 143(3)/263, 143(3) and 143(3) of the Act, dated 31.03.2016, 25.03.2014 and 25.03.2016, respectively. 1.1. The Registry has informed that the appeal filed by the assessee for AY 2011-12 is barred by limitation by 18 days. An application seeking condonation of delay has been filed by the assessee stating as under: “On 27th June 2024, we have received the order of the Commissioner (Appeal) NFAC in our case for the assessment year 2011-12. Being aggrieved by the said order we requested our tax department to prefer a…

Nagreeka Foils Ltd., Kolkata vs. D.C.I.T., Circle - 3(1), Kolkata

In the result, all the three appeals filed by the assessee for AYs

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

…आयकर अपीलीय अधिकरण कोलकाता 'बी' पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘B’ BENCH, KOLKATA श्री प्रदीप कुमार चौबे, न्याधयक सदस्य एवं श्री राकेश धमश्रा, लेखा सदस्य के समक्ष Before SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER I.T.A. Nos.: 1788, 1930 & 1789/KOL/2024 Assessment Years: 2010-11, 2011-12 & 2013-14 D.C.I.T., Circle-3(1), Kolkata Nagreeka Foils Ltd. D.C.I.T., Circle-3, Kolkata Vs. D.C.I.T., Circle-6(3), Kolkata (Appellant) (Respondent) PAN: AAACN8548H Appearances: Assessee represented by : Akshay Ringasia. CA. Department represented by : Kapil Ma…

DCIT, CC-2(2), Aayakar Bhawan Poorva vs. Aryan Mining and Trading Corporation Limited, Hide Lane

In the result, the appeal of the Revenue is dismissed

Bench: Shri Pradip Kumar Choubey, Jm & Shri Rakesh Mishra, Am Aryan Mining & Trading Dcit, Central Circle-2(2), Corporation Limited, 110, Shantipally, 4 Th Floor, P-1, Hide Lane, Johar Building, Vs. Pin-700073, West Bengal Pin-700073, West Bengal (Respondent) (Appellant) Pan No. Aadca7247B Assessee By : Shri A.K. Tulsian, Ar Revenue By : Shri Praveen Kishore, Dr Date Of Hearing: 11.06.2025 Date Of Pronouncement: 23.06.2025

…iii) read with section 14A of the I.T. Act, 1961.The AO has made calculation under rule 8D read with section 14A of the I TAct, 1961 and made disallowance of Rs. 95,77,250/-. We note that Coordinate Bench of ITAT Kolkata, in the case of REI Agro Ltd. Vs. DCIT 144 ITD 141 (Kol-Trib), has held that it is only the investments which yields dividend during the previous year that has to be considered while adopting the average value of investments for the purpose of Rule 8D(2)(ii) & (iii) of the Rules. The aforesaid view of the Tribunal has since been affirmed as correct by the Hon’ble Calcutta High Court in G.A.No.358…

Indian Coal Agency, Kolkata vs. DCIT, Circle-35, Kolkata

In the result, the appeal for AY 2013-14 is partly allowed

Bench: Sonjoy Sarma & Sri Rakesh Mishra

…nce the assessee had surplus interest free funds, therefore, there was no question of disallowance. During the course of hearing before us, the assessee relied upon the decision of the Coordinate Bench of the Tribunal in the case of REI Agro Limited vs. DCIT [144 ITD 141] and stated that the same has been confirmed by the Hon'ble Calcutta High Court. It was further stated that no disallowance for interest was made under Rule 8D(2)(ii) of the Rules in AY 2009-10, AY 2010-11, AY 2011-12, AY 2012-13 and AY 2014-15 by the Ld. AO. We have considered the facts of the case and as the assessee had sufficient interest fre…

Indian Coal Agency, Kolkata vs. Principal CIT, Circle - 12, Kolkata

In the result, the appeal for AY 2013-14 is partly allowed

Bench: Sonjoy Sarma & Sri Rakesh Mishra

…nce the assessee had surplus interest free funds, therefore, there was no question of disallowance. During the course of hearing before us, the assessee relied upon the decision of the Coordinate Bench of the Tribunal in the case of REI Agro Limited vs. DCIT [144 ITD 141] and stated that the same has been confirmed by the Hon'ble Calcutta High Court. It was further stated that no disallowance for interest was made under Rule 8D(2)(ii) of the Rules in AY 2009-10, AY 2010-11, AY 2011-12, AY 2012-13 and AY 2014-15 by the Ld. AO. We have considered the facts of the case and as the assessee had sufficient interest fre…

DCIT, Circle-35, Kolkata vs. M/S. Indian Coal Agency, Kolkata

In the result, the appeal for AY 2013-14 is partly allowed

Bench: Sonjoy Sarma & Sri Rakesh Mishra

…nce the assessee had surplus interest free funds, therefore, there was no question of disallowance. During the course of hearing before us, the assessee relied upon the decision of the Coordinate Bench of the Tribunal in the case of REI Agro Limited vs. DCIT [144 ITD 141] and stated that the same has been confirmed by the Hon'ble Calcutta High Court. It was further stated that no disallowance for interest was made under Rule 8D(2)(ii) of the Rules in AY 2009-10, AY 2010-11, AY 2011-12, AY 2012-13 and AY 2014-15 by the Ld. AO. We have considered the facts of the case and as the assessee had sufficient interest fre…