Anilraj Promoters & Fincon Pvt. Ltd., Kolkata V. ITO, Ward - 13(1), Kolkata , Kolkata

ITA 1146/KOL/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1916 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 25-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S VENKATRAMA N
• Assessee Lawyers: MIRAJ D. SHAH
• Section: 14A; 2

Judgement Text

ITA NO.1146/KOL/2018 ANILRAJ PROMOTERS & FINCON PVT . LTD. A.Y.202-13 1 IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH SMC K OLKATA [BEFORE HONBLE SHRI J.SUDHAKAR REDDY, AM] ITA NO.1146/KOL/2018 ASSESSMENT YEAR : 2012-13 ANILRAJ PROMOTERS & FINCON PVT.LTD. -VERSUS- I.T.O., WARD-13 (1) KOLKATA KOLKATA (PAN: AACCA9822H) (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI MIRAJ D.SHAH, AR FOR THE RESPONDENT: SHRI S.VENKAT RAMAN, ADDL.CIT DATE OF HEARING : 27.08.2018. DATE OF PRONOUNCEMENT : 30.08.2018. ORDER PER J.SUDHAKAR REDDY, AM: THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST ORDER OF THE COMMISSIONER OF INCOME TAX-(A)-5, KOLKATA DATED 03 .01.2018 PASSED U/S 250 OF THE INCOME TAX ACT, 1961 (THE ACT ) RELATING TO A.Y. 2012-13. 2. AFTER HEARING RIVAL CONTENTIONS, I FIND THAT TH E SOLE ISSUE THAT ARISES FOR ADJUDICATION IS DISALLOWANCE U/S 14A OF THE ACT. TH E DIVIDEND INCOME EARNED BY THE ASSESSEE DURING THE YEAR WHICH IS CLAIMED AS EXEMPT U/S 10(34) OF THE ACT IS RS.6,02,230/-. THE DISALLOWANCE U/S 14A OF THE ACT ARRIVED AT BY THE AO IS RS.17,38,804/-. 3. THE HONBLE DELHI HIGH COURT IN THE CASE OF JOI NT INVESTMENTS PVT. LTD VS CIT [2015] 372 ITR 694(DELHI) HAS HELD THAT THE QUANTUM OF DISALLOWANCE U/S 14A OF THE ACT CANNOT EXCEED THE DIVIDEND INCOME EARNED WHICH IS EXEMPT U/S 10(34) OF THE ACT. 4. MOREOVER, THE HONBLE CALCUTTA HIGH COURT IN TH E CASE OF CIT VS REI AGRO LTD IN GA NO.3581 OF 2013 ITAT NO.20 OF 2013 HAS LAID D OWN THAT, WHEN DISALLOWANCE ITA NO.1146/KOL/2018 ANILRAJ PROMOTERS & FINCON PVT . LTD. A.Y.202-13 2 IS MADE U/S 14A, ONLY THOSE SCRIPTS ON WHICH DIVIDE ND IS EARNED HAS TO BE CONSIDERED. THESE TWO PRINCIPLES OF LAW LAID DOWN HAVE NOT BEEN APPLIED TO THIS CASE BY THE LD. AO. THE LD. CIT(A) HAS PASSED AN EXPARTE ORDER. IN THIS FACTS AND CIRCUMSTANCES I RESTORE THIS ISSUE TO THE FILE OF THE AO FOR FRESH ADJUDICATION IN ACCORDANCE WITH LAW. THE AO IS DIRECTED TO COMPUTE THE DISALLOWANCE U/S 14A, ONLY WITH REFERENCE TO THE SHARES ON WHICH THE ASSESSEE HAS EARNED DIVIDEND IN COME DURING THE YEAR. SUCH DISALLOWANCE U/S 14A OF THE ACT SHALL NOT BE MORE T HAN THE DIVIDEND INCOME EARNED BY THE ASSESSEE DURING THE YEAR, WHICH WAS CLAIMED AS EXEMPT. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. O RDER PRONOUNCED IN THE COURT ON 30.08.2018. SD/- [ J.SUDHAKAR REDDY ] ACCOUNTANT MEMBER DATED : 30.08.2018. [RG SR.PS] COPY OF THE ORDER FORWARDED TO: 1.ANILRAJ PROMOTERS & FINCON PVT. LTD., P-1, HYDE L ANE, 7 TH FLOOR, SUIT NO.7B, KOLKATA-700073. 2. I.T.O., WARD-13 (1), KOLKATA. 3. C.I.T.(A)- 5, KOLKATA 4. C.I.T-5, KOLKATA 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER, SENIOR PRIVATE SECRETARY HEAD OF OFFICE/D.D.O, ITAT KOLKATA BENCHES ITA NO.1146/KOL/2018 ANILRAJ PROMOTERS & FINCON PVT . LTD. A.Y.202-13 3