Janardan Kumar Kothari , Kolkata V. ITO, Ward - 44(2), Kolkata , Kolkata

ITA 1332/KOL/2018

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 0833 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 18-06-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DILIP KUMAR MITRA
• Assessee Lawyers: ANIL KOCHR
• Keywords: Earning of tax free income; Proportionate interest
• 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.1332/KOL/2018 ASSESSMENT YEAR:2012-13 JANARDAN KUMAR KOTHARI, C/O SRI S.L. KOCHAR, ADVOCATE, 5, ASHUTOSH CHOWDHURY AVENUE, KOLKATA-19 [ PAN NO.AFCPK 7949 D ] / V/S . INCOME TAX OFFICER, WARD-44(2), 3 GOVT. PLACE (WEST), KOLKATA-700 001 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI ANIL KOCHR, ADVOCATE /BY RESPONDENT SHRI DILIP KUMAR MITRA, ADDL. CIT-DR /DATE OF HEARING 19-09-2018 /DATE OF PRONOUNCEMENT 05-10-2018 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2012-13 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-13, KOLKATAS ORDER DATED 08.05.2018 PASSED IN CASE NO.135/CIT(A)-13/W-44(2)/KOL/2015-16 INVOL VING PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE INSTANT TAXPAYERS SOLE SUBSTANTIVE GRIEVAN CE RAISED IN THE INSTANT APPEAL CHALLENGES CORRECTNESS OF BOTH THE LOWER AUTHORITIE S ACTION INVOKING SEC. 14A R.W.S RULE 8D DISALLOWANCE OF 3,04,237/- IN THE COURSE OF ASSESSMENT AS AFFIRMED IN THE LOWER APPELLATE PROCEEDINGS. THERE IS NO DISPUTE AB OUT THE ASSESSEE HAVING DERIVED EXEMPT INCOME TO THE TUNE OF 6,23,613/-. THE QUESTION INVOLVED IN THE INSTANT AP PEAL IS THAT OF ITS QUANTIFICATION ONLY. THE ASSESSING O FFICER COMPUTED THE SAME TO BE COMPRISING OF DIRECT EXPENDITURE OF 44,483/-, PROPORTIONATE INTEREST AND ITA NO.1332/KOL/2018 A.Y. 2012-13 JANARDAN KR. KOTHARI VS. ITO WD-44(2 ), KOL. PAGE 2 ADMINISTRATIVE EXPENDITURE OF 18,430/- AND 2,41,324/-; RESPECTIVELY. THE ASSESSEES ONLY ARGUMENT BEFORE ME IS THAT IT HAD CLAIMED TOTA L EXPENDITURE ON ACCOUNT OF BANKING CHARGES, INCOME TAX, INTEREST, LIC PREMIUM, MEDICLAIM & STT 16,400/-, 21,907/-, 1,28,136/-, 25,777/- AND 44,483/-; RESPECTIVELY. THERE IS NO CHALLENGE SO FAR THE SECURITY TRANSACTION TAX DISALLOWANCE CONCE RNED TO BE IN THE NATURE OF DIRECT EXPENDITURE RELATED TO EXEMPT INCOME IN SAME STANDS CONFIRMED THEREFORE. 3. COMING TO OTHER EXPENSES, I FIND THAT NO SUCH CL AIM WAS RAISED AT THE ASSESSEES BEHEST IN ITS BOOKS. THIS TRIBUNALS DECISION IN VI SION EL TECH AND SERVICES PVT. LTD. VS. DCIT IN ITA NO.1519/BANG/2016 DECIDED ON 31.05. 2017 HOLDS THAT THE IMPUGNED DISALLOWANCE CANT EXCEED THE TOTAL EXPENDITURE HAV ING NEXUS WITH EXEMPT INCOME. THE REVENUE FAILS TO PIN POINT ANY SUCH NEXUS QUA T HE LATTER TWO HEADS. I THEREFORE SUSTAIN ONLY THE DIRECT EXPENDITURE DISALLOWANCE OF 44,483/-. THE ASSESSEE GETS PART RELIEF ACCORDINGLY. 4. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOV E TERMS. ORDER PRONOUNCED IN OPEN COURT ON 05/10/2018 SD/- (S.S. GODA RA) JUDICIAL MEM BER KOLKATA, *DKP/SR.PS - 05/10/2018 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-JANARDAN KR. KOTHARI, C/O SRI S.L. KOCHA R, ADVOCATE 5, ASHUTOSH CHOWDHURY AVENUE, KOLKATA-19 2. /RESPONDENT-ITO WARD-44(2), 3 GOVT. PLACE (WEST), K OLKATA-700001 3. ' % / CONCERNED CIT 4. % - / CIT (A) 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR. PRIVATE SECRETARY, HEAD OF OFFICE/DDO ',