Vantage Tradelinks Pvt. Ltd., New Delhi V. I.T.O.,Ward-5(4), Kolkata

ITA 1250/KOL/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2464 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 21-11-2019
• Assessment Year: 2015-2016
• Appeal Filed On: 23-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANUA
• Assessee Lawyers: MANISH TEWARI
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A

Judgement Text

1 ITA NO. 1250/KOL/2019 VANTAGE TRADELINKS PVT. LTD., AY- 2015-16 , B(SMC) , IN THE INCOME TAX APPELLATE TRIBUNAL B(SMC) BENCH : KOLKATA ( ) . . , ) [BEFORE SHRI A. T. VARKEY, JM] ITA NO.1250/KOL/2019 ASSESSMENT YEAR: 2015-16 VANTAGE TRADELINKS PVT. LTD. (PAN: AACCV6240L) VS. INCOME-TAX OFFICER, WD-5(4), KOLKATA APPELLANT RESPONDENT DATE OF HEARING 21.11.2019 DATE OF PRONOUNCEMENT 04.12.2019 FOR THE APPELLANT SHRI MANISH TEWARI, FCA FOR THE RESPONDENT SHRI JAYANTA KHANUA, JCIT, SR. D R ORDER THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A)-2, KOLKATA DATED 14-01-2019 FOR THE ASSESSMENT YEAR 2015-16. 2. GROUND NUMBER 1 & 2 ARE NOT PRESSED, SO IT STAND S DISMISSED. FURTHER, THE MAIN GRIEVANCE OF ASSESSEE IN THIS APPEAL IS AGAINST THE ORDER OF LD. CIT(A) IN DISMISSING THE APPEAL OF ASSESSEE WITHOUT SPEAKING ON THE MERIT OF DISALLOWANCE OF RS.2,67,763/- U/S. 14A OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED T O AS THE ACT) READ WITH RULE 8D OF THE INCOME-TAX RULES, 1962 (HEREINAFTER REFERRED TO AS THE RULES). 3. THE LD. COUNSEL FOR THE ASSESSEE HAS ALSO BROUGH T TO OUR NOTICE THAT THE GROUND NO.3 IS REGARDING THE DISALLOWANCE MADE BY THE AO APPLYI NG SECTION 14A ACT READ WITH RULE 8D OF THE RULES. ACCORDING TO LD. COUNSEL, THE ASSESSE E DID NOT RECEIVE ANY EXEMPT INCOME, THEREFORE, RELYING UPON THE DECISION OF HONBLE CAL CUTTA HIGH COURT IN THE CASE OF CIT VS. M/S. ASHIKA GLOBAL SECURITIES LTD. IN ITAT 100 OF 2 014, GA 2122 OF 2014 DATED 11.06.2018 CONTENDED THAT NO DISALLOWANCE U/S. 14A WAS WARRANTED IN THE FACTS OF THE CASE AND, THEREFORE, THE ORDER OF THE AO/LD. CIT(A) IS ERRONEOUS. 4. AFTER HEARING THE RIVAL SUBMISSIONS AND HAVING G ONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE WE NOTE THAT THE AO TAKIN G NOTE OF THE FACT THAT THE ASSESSEE HAS MADE INVESTMENTS WHICH WOULD EARN EXEMPT INCOME, WA S OF THE OPINION THAT SEC. 14A READ 2 ITA NO. 1250/KOL/2019 VANTAGE TRADELINKS PVT. LTD., AY- 2015-16 WITH RULE 8D IS ATTRACTED IN THE INSTANT CASE. AND SO, HE APPLIED RULE 8D READ WITH SEC. 14A TO COMPUTE THE DISALLOWANCE, WHICH HE OUGHT NOT TO HAVE DONE, SINCE THE ASSESSEE DID NOT EARN ANY EXEMPT INCOME, THEREFORE, SECTION 14A DISA LLOWANCE WAS NOT WARRANTED, WHICH VIEW HAS BEEN UPHELD BY THE HONBLE CALCUTTA HIGH C OURT IN ASHIKA GLOBAL SECURITIES LTD. (SUPRA) AND, THEREFORE, WE DIRECT DELETION OF THE A DDITION OF RS.2,67,763/-. 5. IN THE RESULT, APPEAL OF ASSESSEE IS PARTLY ALL OWED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 4 TH DECEMBER, 2019. SD/- (ABY. T. VARKEY) JUDICIAL MEMBER DATED :4TH DECEMBER, 2019 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. APPELLANT M/S. VANTAGE TRADELINKS PVT. LTD., 2 44/6, F. NO.145/F BLOCK, GALI NO. 1, SCHOOL MANDAWALI, DELHI-110092. 2 RESPONDENT ITO, WARD-5(4) , KOLKATA. 3. 4. 5. CIT(A)-2, KOLKATA (SENT THROUGH E-MAIL) CIT- , KOLKATA. DR, ITAT, KOLKATA. (SENT THROUGH E-MAIL) / TRUE COPY, BY ORDER, ASSISTANT REGISTRAR