Shri Rajiv Mundhra , Kolkata V. DCIT, Circle - 12(2), Kolkata , Kolkata

ITA 1124/KOL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5708 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 24-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MADHUMALTI GHOSH CITSR
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC KOLKATA BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.1124/KOL/2018 ASSESSMENT YEAR:2013-14 SHRI RAJIV MUNDHRA 126, SOUTHERN AVENUE, KOLKATA-700029 [ PAN NO.AIIPM 7012 J ] / V/S . DCIT, CIRCLE-12(2), AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-69 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI RAVI TULSIYAN FCA /BY RESPONDENT SMT. MADHUMALTI GHOSH, ADDL. CIT-SR- DR /DATE OF HEARING 23-01-2019 /DATE OF PRONOUNCEMENT 31-01-2019 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2013-14 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-4, KOLKATAS O RDER DATED 19.04.2018 PASSED IN CASE NO.186/CIT(A)-4/C-12(3)/16-17 INVOLVING PROCEE DINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. IT EMERGES AT THE OUTSET THAT ASSESSEES SOLE SU BSTANTIVE GROUND PLEADED IN THE INSTANT APPEAL CHALLENGES CORRECTNESS OF CIT(A)S O RDER CONFIRMING ASSESSING OFFICERS ACTION DISALLOWING ADMINISTRATIVE EXPENSE U/S 14A R.W.S RULE 8D(2)(III) OF THE INCOME TAX RULE, 1962 AMOUNTING TO 1,39,682/- @ 0.5% AVERAGE VALUE OF INVESTMENTS. SUFFICE TO SAY, IT TRANSPIRES DURING T HE COURSE OF HEARING THAT ASSESSEE HAD NOT CLAIMED ANY ADMINISTRATIVE EXPENDITURE AT ALL A S PER ITS COMPUTATION FORMING PART ITA NO.1124/KOL/2018 A.Y. 2013-14 SH RAJIV MUNDHRA VS. DCIT, CIR-12(2),KOL. PAGE 2 OF THE CASE FILE. THIS CLINCHING FACT FORMS SUFFICI ENT REASON FOR ME TO HOLD THAT THE IMPUGNED DISALLOWANCE PROVISION SEC. 14A R.WS. 8D(2 )(III) DOES NOT APPLY IN ABSENCE OF ANY ACTUAL EXPENDITURE BEING CLAIMED AT THE ASSE SSEES BEHEST. I THEREFORE, DELETE THE IMPUGNED DISALLOWANCE FOR THIS PRECIOUS REASON ALON E AS PURPOSE OF SAID STATUTORY PROVISION IS TO DISALLOW ONLY THE EXPENDITURE ACTUA LLY INCURRED. THE ASSESSEE SUCCEEDS IN HIS SOLE SUBSTANTIVE GRIEVANCE THEREFORE. 3. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 31/01/2019 SD/- (S.S. GODARA) JUDICIAL MEMBE R KOLKATA, *DKP/SR.PS - 31/01/2019 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-SHRI RAJIV MUNDHRA, 126, SOUTHERN AVENUE , KOLKATA-29 2. /RESPONDENT-DCIT, CIRCLE-12(2), AAYAKAR BHAWAN, P-7 , CHOWRINGHEE SQUARE, KOLKATA- 69 3. ' % / CONCERNED CIT 4. % - / CIT (A) 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORDER/ , /TRUE COPY/ / ',