REI Agro Ltd. v. DCIT

Shekhavati Investments and Traders Limited, Kolkata vs. DCIT, Circle - 6(1), Kolkata

In the result, the appeal of the assessee is allowed for statistical purposes in above terms

Bench: Shri S.S. Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1663/Kol/2018 ("नधा"रणवष" / Assessment Year: 2014-15)

…income and as per the judgement of Hon’ble Supreme court in Goetz (India) Ltd. supra, ld. CIT(A) and Tribunal may admit the additional claim/ground. 8. We want to make it clear that the decision of Co-ordinate Bench of ITAT, Kolkata in REI Agro Ltd. vs. DCIT 144 ITD 141 (Kol-Trib) wherein it was held that it is only investment which yields dividend during the previous year that has to be considered while adjudicating the average value of investment for the purpose of rule 8D(2)(ii) and 8D(2)(iii) of IT Rules. The aforesaid view of Tribunal has been affirmed as correct by the Hon’ble Calcutta High court in GA No.…

ACIT, Circle - 6(2), Kolkata vs. M/S. Umil Share & Stock Broking Limited, Kolkata

Bench: Shri S.S.Godara & Dr. A.L. Sainiassessment Year :2010-11 Acit/Dcit, Circle-6(2) V/S. M/S Usha Martin Ventures Aayakar Bhawan, 6Thfloor, Ltd., 24, R.N. Mukherjee Room No.6/15, P-7, Road, Kolkata-700001 Chowringhee Square, [Pan No.Aaacu 3843 J] Kolkat-700069 .. अपीलाथ" /Appellant ""यथ"/Respondent

…ule 8D, both parties fail to dispute that the CIT(A) has directed the Assessing Officer to re-compute the impugned disallowance qua the exempt income yielding investment only as per this tribunal’s co-ordinate bench’s decision in REI Agro Ltd. vs. DCIT (2013) 144 ITD 141 (Kol) upheld in hon'ble jurisdictional high court. The Revenue’s third substantive ground in both these two appeals is declined therefore. 9. We now advert to assessee’s cross-objection that the Assessing Officer had nowhere recorded mandatory satisfaction us/1 4A r.w.s. 8D disallowance before computing the impugned disallowance. We find that th…

ACIT/DCIT, Circle - 6(2), Kolkata vs. M/S. Usha Martin Ventures Limited, Kolkata

Bench: Shri S.S.Godara & Dr. A.L. Sainiassessment Year :2010-11 Acit/Dcit, Circle-6(2) V/S. M/S Usha Martin Ventures Aayakar Bhawan, 6Thfloor, Ltd., 24, R.N. Mukherjee Room No.6/15, P-7, Road, Kolkata-700001 Chowringhee Square, [Pan No.Aaacu 3843 J] Kolkat-700069 .. अपीलाथ" /Appellant ""यथ"/Respondent

…ule 8D, both parties fail to dispute that the CIT(A) has directed the Assessing Officer to re-compute the impugned disallowance qua the exempt income yielding investment only as per this tribunal’s co-ordinate bench’s decision in REI Agro Ltd. vs. DCIT (2013) 144 ITD 141 (Kol) upheld in hon'ble jurisdictional high court. The Revenue’s third substantive ground in both these two appeals is declined therefore. 9. We now advert to assessee’s cross-objection that the Assessing Officer had nowhere recorded mandatory satisfaction us/1 4A r.w.s. 8D disallowance before computing the impugned disallowance. We find that th…

Britannia Industries Limited, Kolkata vs. DCIT, Circle - 7(1), Kolkata

In the result, the appeal of the assessee is partly allowed

Bench: Shri S. S. Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.2235/Kol/2017 ("नधा"रणवष" / Assessment Year:2013-14)

…. Coming to the computation aspect of assessee`s administrative expenses, we note that disallowance of administrative expenses is governed by Rule 8D (2) (iii) of the Income Tax Rules. The 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) (iii) of the I T Rules. The aforesaid view of the Tribunal has since been affirmed as correct by the Hon’ble Calcutta High Court in G.A.No.3581 o…

West Bengal Electronics Industry Development Corporation Limited, Kolkata vs. DCIT, Corporate Circle - 2(2), Kolkata

Appeal is partly allowed in above terms

Bench: Shri J.Sudhakar Reddy & Shri S.S.Godaraassessment Year: 2012-13

…e during the course of hearing is that both the lower authorities have computed the impugned disallowance without following this tribunal’s decision ITA No.1202/Kol/2018 A.Y 2012-13 WBEIDC. Ltd.. Vs DCIT, Cir-2(2) Kol. Page 4 in REI Agro Ltd. vs. DCIT (2013) 144 ITD 141 (Kol) as upheld in hon'ble jurisdictional high court’s judgment that only the dividend income yielding investments have to be taken into consideration in administrative expenditure impugned head of expenditure. We therefore direct the Assessing Officer to re- compute the impugned disallowance as per law keeping in mind the said settled legal posi…

The Peerless General Finance & Investment Co. Ltd., Kolkata vs. DCIT, Circle - 3(1), Kolkata

In the result, appeal of the assessee in ITA No

Bench: Shri A.T. Varkey, J.M. & Dr.A.L.Saini, A.M.)

…to the submission of the parties and perusing the judicial decisions relied upon by the Ld. AR, we find that the issue involved in the present issue is no longer res integra. We note that Coordinate Bench of ITAT Kolkata in the case of REI Agro Ltd. Vs. DCIT 144 ITD 141 (Kol­Trib) 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.3581…

The Peerless General Finance & Investment Co. Ltd., Kolkata vs. DCIT, Circle - 3(1), Kolkata

In the result, appeal of the assessee in ITA No

Bench: Shri A.T. Varkey, J.M. & Dr.A.L.Saini, A.M.)

…to the submission of the parties and perusing the judicial decisions relied upon by the Ld. AR, we find that the issue involved in the present issue is no longer res integra. We note that Coordinate Bench of ITAT Kolkata in the case of REI Agro Ltd. Vs. DCIT 144 ITD 141 (Kol­Trib) 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.3581…

DCIT, Central Circle - 2(1), Kolkata vs. M/S. Sona Vets Pvt. Ltd., Kolkata

In the result, the appeal of the Revenue is partly allowed

Bench: Sh. P.M.Jagtap & Sh.S.S.Viswanethra Ravivs M/S. Sona Vets Pvt. Ltd., Dcit, Central Circle-2(1), 17Th Floor, Room No.17B & C, Kolkata-700107. Everest House, 46C, Chowringhee Road, Kolkata-700071. Pan-Aaecs0908G (Appellant) (Respondent) Appellant By Dr. P.K.Srihari, Cit Dr Respondent By Shikha Agarwal, Aoa Date Of Hearing 24.01.2019 Date Of Pronouncement 23.04.2019 Order Per S.S. Viswanethra Ravithis Appeal Filed By The Revenue Against The Order Dated 04.05.2017 Passed By Cit(A)-20, Kolkata For Ay 2014-15. 2. Ground Nos. 1 To 4 Are Relating To Deletion Of Addition Made On Account Of Deduction U/S 80Ia Of The Income Tax Act, 1961 (In Short “Act”).

…e of Rs.4,49,816/- and by invoking the method of Rule 8D(2) for the purpose of calculating the disallowance u/s 14A, the AO disallowed Rs.8,18,397/-. The CIT(A) by placing reliance on the decision of Hon’ble High Court of Calcutta in the case of REI Agro Ltd. 144 ITD 141 (Cal.) restricted the disallowance to Rs.64,936/- taking into consideration the investment which yielded the dividend. The relevant portion of which is reproduced herein below:- 12. “I have considered AY submission on this issue and the calculation under rule 8D. Accordingly as per the calculation under Rule 8D read with section 14A for the inve…

M/S. Angela Holdings Pvt. Ltd., Kolkata vs. ITO, Ward - 4(3), Kolkata

In the result, the appeal of assessee is allowed for statistical purposes

Bench: Shri A. T. Varkey, Jm]

…receipt of any exempt income. So, no disallowance u/s. 14A read with Rule 8D should be invoked. According to Ld. AR, even if any disallowance is to be made then the disallowance should not exceed the exempt income as held in the case of REI Agro Ltd. Vs. DCIT 144 ITD 141. 3. I have heard rival submissions and gone through the facts and circumstances of the case. It was brought to our notice that the order impugned is an ex parte order. However, 2 Angela Holdings Pvt. Ltd., AY 2013-14 according to Ld. AR, the issue involved is only regarding disallowance u/s. 14A of the Act. It was brought to our notice that the…

ITO, WD-8(2), Kolkata vs. M/S the Bond Company Limited, Kolkata

In the result, the appeal of the Revenue is dismissed

Bench: Shri S.S. Godara, J.M. & Dr.A.L.Saini, A.M.) Asstt. Year : 2008-09 I.T.O. Ward 8(2), Kolkata Vs M/S. The Bond Company Ltd Pan: Aaact9317Q Deptt. (Respondent)

…T(A) has already directed the AO to consider the dividend bearing securities to compute the disallowance under Rule 8D(2)(ii) & (iii) of the Rules. For that, we rely on the judgment of the Coordinate Bench of ITAT Kolkata in the case of REI Agro Ltd. Vs. DCIT 144 ITD 141 (Kol-Trib) wherein it was held that only the investments which M/s. The Bond Company Ltd 6 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 I.T. Rules. The aforesaid view of the Tribunal has since been affirmed as correct by the Hon…

Himalayan Endeavour Pvt. Ltd., Kolkata vs. DCIT, Circle - 1, Siliguri

In the result, the appeal of the assessee is partly allowed

Bench: Shri A.T.Varkey, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.2391/Kol/2017 ("नधा"रणवष" / Assessment Year:2013-14)

…IN THE INCOME TAX APPELLATE TRIBUNAL “B”, BENCH KOLKATA BEFORE SHRI A.T.VARKEY, JM &DR. A.L.SAINI, AM आयकरअपीलसं./ITA No.2391/Kol/2017 ("नधा"रणवष" / Assessment Year:2013-14) M/s Himalayan Endeavour Pvt. Vs. DCIT, Circle-1, Siliguri Ltd. C/o, Subash Agarwal & Associates Siddha Gibson, 1, Gibson Lane, 2nd Floor, suite No. 213, Kolkata-700069. "थायीलेखासं./जीआइआरसं./PAN/GIR No.: AAACH 7707 C (Assessee) .. (Revenue) Assessee by :Shri Subash Agarwal, Advocate Respondent by : Shri Robin Chowdhury, Addl. CIT Sr. DR सुनवाईक"तार"ख/ Date of Hearing : 26/02/2019 घोषणाक"तार"ख/Date of Pronouncement : 29/03/2019 आदेश /…

DCIT, Circle - 3(1), Kolkata vs. M/S. Atibir Hi-Tech Pvt. Ltd., Kolkata

In the result, the appeal of the revenue as well as cross- objection of the assessee are dismissed

Bench: Shri P.M. Jagtap, Vice-(Kz) & Shri A.T. Varkey, Jm] Assessment Year: 2013-14 D.C.I.T, Circle – 3(1) Kolkata...........................................................................................Appellant P-7, Chowringhee Squar, 4Th Floor, Aayakar Bhawan, Room No. 19, Kolkata – 700 069. M/S. Atibir Hi-Tech Pvt. Ltd. …………………………………………………….......................Respondent Block-7B, 7Th Floor, Abdul Hamid Street, Kolkata – 700 069. [Pan : Aabca 4466 C] C.O. No. 118/Kol/2017 (Arising Out Of Ita No. 1747/Kol/2017) Assessment Year: 2013-14 M/S. Atibir Hi-Tech Pvt. Ltd. ……………………………………………………..................Cross-Objector Block-7B, 7Th Floor, Abdul Hamid Street, Kolkata – 700 069. [Pan : Aabca 4466 C] D.C.I.T, Circle – 3(1) Kolkata.......................................................................................Respondent P-7, Chowringhee Squar, 4Th Floor, Aayakar Bhawan, Room No. 19, Kolkata – 700 069. Appearances By: Shri Radhey Shyam, Cit, Dr Appearing On Behalf Of The Revenue Shri D.S. Damle, Fca Appearing On Behalf Of The Assessee Date Of Concluding The Hearing : January 16, 2019 Date Of Pronouncing The Order : March 29, 2019 Order Per P.M. Jagtap, Vice-(Kz) This Appeal Is Preferred By The Revenue Against The Order Of Ld. Cit (A) – 11, Kolkata Dated 04.042017 & The Same Is Being Disposed Of Along With The Cross-Objection Filed By The Assessee Being C.O. No. 118/Kol/2017. 2 Ita No. 1747/Kol/2017 & C.O. No. 118/Kol/2017 Assessment Year 2013-14 M/S. Atibir Hi-Tech Pvt. Ltd.

…O. u/s 14A is squarely covered inter alia by the decision of Hon’ble Punjab and Haryana High Court in the case of CIT vs Hero Cycles (P) Ltd. (189 Taxman 50) as well as by the decision of Coordinate Bench of this Tribunal in the case of REI Agro Ltd. vs DCIT (144 ITD 141) wherein it was held that no disallowance u/s 14A could be made if there was no exempt income actually earned by the assessee during the relevant year. In the present case, no exempt income was earned by the company during the year under consideration and this being the undisputed position, we find no infirmity in the impugned order of the Ld. CI…

DCIT, Central Circle - 2(2), Kolkata vs. M/S. Shree Harivansh Securities Pvt. Ltd., Kolkata

In the result, appeal of revenue is dismissed and assessee’s Rule 27 application is allowed as discussed above

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

…hough assessee challenged the addition made u/s. 14A read with Rule 8D(2)(i), the Ld. CIT(A) has not adjudicated the same and only adjudicated in respect to application of Rule 8D(2)(iii) and relying on the judgment of this Tribunal in REI Agro Ltd. Vs. DCIT (144 ITD 141) has directed the AO to take into consideration 0.5% of the investment in scrips which had yielded dividend income. This action of the Ld. CIT(A) has been challenged by the Revenue. However, the assessee has also filed the Rule 27 application has contended that the AO’s action in respect of application under Rule 8D(2)(iii) is fully supported by…

DCIT, Circle - 6(1), Kolkata vs. M/S. Integrated Coal Mining Limited, Kolkata

Appeal is partly allowed in above terms

Bench: Shri S.S.Godara & Dr. A.L. Sainiassessment Year :2010-11 Dcit, Circle-6(1), V/S. M/S Integrated Coal P-7, Chowringhee Mining Ltd., 6, Church Square, Kolkata-69 Lane, 1Ste Floor, Kolakta-700001 [Pan No.Aaaci 5584 L] .. अपीलाथ" /Appellant ""यथ"/Respondent Dr. P.K. Srihari, Cit-Dr अपीलाथ" क" ओर से/By Appellant Shri Diparun Mukherjee, Aca & ""यथ" क" ओर से/By Respondent Shri Alolk Goenka, Aca 15-01-2019 सुनवाई क" तार"ख/Date Of Hearing 15-03-2019 घोषणा क" तार"ख/Date Of Pronouncement

…आयकर अपील"य अधीकरण, "यायपीठ – “C” कोलकाता, IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH “C” KOLKATA Before Shri S.S.Godara, Judicial Member and Dr. A.L. Saini, Accountant Member Assessment Year :2010-11 DCIT, Circle-6(1), V/s. M/s Integrated Coal P-7, Chowringhee Mining Ltd., 6, Church Square, Kolkata-69 Lane, 1ste Floor, Kolakta-700001 [PAN No.AAACI 5584 L] .. अपीलाथ" /Appellant ""यथ"/Respondent Dr. P.K. Srihari, CIT-DR अपीलाथ" क" ओर से/By Appellant Shri Diparun Mukherjee, ACA & ""यथ" क" ओर से/By Respondent Shri Alolk Goenka, ACA 15-01-2019 सुनवाई क" तार"ख/Date of Hearing 15-03-2019 घोषणा क" तार"ख/Date of…

DCIT, Circle - 6(1), Kolkata vs. M/S. Isg Traders Ltd., Kolkata

In the result, appeal of the revenue is dismissed

Bench: Sri P.M. Jagtap, Vice- & Sri S.S. Viswanethra Ravi] I.T.A. No. 1514/Kol/2018 Assessment Year: 2013-14 Deputy Commissioner Of Income Tax, Circle-6(1), Kolkata...........……...……………………..…….. Appellant Vs. M/S. Isg Traders Ltd…………………………………............................…………………….…….….......…........Respondent 31, N.S. Road Kolkata – 700 001 [Pan : Aabci 1355 C] Appearances By: Shri G.A. Seshan, A/R, Appeared On Behalf Of The Assessee. Shri Shankar Halder, Jcit, Sr. Dr Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : March 4Th, 2019 Date Of Pronouncing The Order : March 13Th , 2019 O R D E R Per S.S. Viswanethra Ravi, Jm :-

…the impugned order at page no. 4, the ld. CIT(A) directed the Assessing Officer to recalculate the disallowance of those shares which has yielded dividend income by placing reliance on the judgment of Jurisdictional ITAT in the case of REI Agro Ltd. vs. DCIT (144 ITD 141). We find that the Assessing Officer considered the average value of all the investments held by the assessee as on 31/03/2012 and 31/03/2013 for the purpose of computing disallowance u/s 14A of the Act by invoking the method as contemplated in Rule 8D of the Rule. It is needless to say that this Tribunal held that the disallowance of expenditure…

DCIT, Central Circle - 4(4), Kolkata vs. M/S. Electrosteel Castings Limited., Kolkata

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

…/s 14A can be made only on those investments which yield tax-exempt income during the year. The aforesaid claim finds strength from the following:  The Bombay High Court in case of CIT Vs. Delite Enterprises  The ITAT(Kol) in case of REI Agro Ltd. Vs. DCIT [144 ITD 141] (Affirmed by Calcutta High Court)  The Delhi High Court in case of CIT Vs. Holcim India P. Ltd. [272 CTR 282]  The Punjab & Haryana High Court in case of CITVs. Lakhani Marketing Inc. [272 CTR 265]  ITAT(Bangalore) in case of Alliance Infrastructure Projects Pvt. Ltd. Vs, DCIT (order enclosed)  ITAT(Chennai) in case of ACIT Vs. M.Baskaran [1…

DCIT, Central Circle - 4(4), Kolkata vs. M/S. Electrosteel Castings Limited., Kolkata

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

…/s 14A can be made only on those investments which yield tax-exempt income during the year. The aforesaid claim finds strength from the following:  The Bombay High Court in case of CIT Vs. Delite Enterprises  The ITAT(Kol) in case of REI Agro Ltd. Vs. DCIT [144 ITD 141] (Affirmed by Calcutta High Court)  The Delhi High Court in case of CIT Vs. Holcim India P. Ltd. [272 CTR 282]  The Punjab & Haryana High Court in case of CITVs. Lakhani Marketing Inc. [272 CTR 265]  ITAT(Bangalore) in case of Alliance Infrastructure Projects Pvt. Ltd. Vs, DCIT (order enclosed)  ITAT(Chennai) in case of ACIT Vs. M.Baskaran [1…

M/S. Electrosteel Casting Limited., Kolkata vs. DCIT, Cental Circle - 4(4), Kolkata

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./I.T.A Nos.138 & 139/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) M/S. Electrosteel Castings Ltd. Vs. Dcit, Central Circle-4(4), Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Assessee) .. (Revenue) & आयकरअपीलसं./I.T.A Nos.191 & 192/Kol/2018 ("नधा"रण वष" / Assessment Year: 2012-13 & 2013-14) Dcit, Central Circle-4(4), Vs. M/S. Electrosteel Castings Ltd. Kolkata. 19, G. K. Tower, Camac Street, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace 4975 B (Revenue) .. (Assessee)

…/s 14A can be made only on those investments which yield tax-exempt income during the year. The aforesaid claim finds strength from the following:  The Bombay High Court in case of CIT Vs. Delite Enterprises  The ITAT(Kol) in case of REI Agro Ltd. Vs. DCIT [144 ITD 141] (Affirmed by Calcutta High Court)  The Delhi High Court in case of CIT Vs. Holcim India P. Ltd. [272 CTR 282]  The Punjab & Haryana High Court in case of CITVs. Lakhani Marketing Inc. [272 CTR 265]  ITAT(Bangalore) in case of Alliance Infrastructure Projects Pvt. Ltd. Vs, DCIT (order enclosed)  ITAT(Chennai) in case of ACIT Vs. M.Baskaran [1…