DCIT, Circle - 12(1), Kolkata , Kolkata V. M/s. Medhawi Traders Ltd., , Kolkata

ITA 1559/KOL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1436 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 06-03-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 20-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: C J SINGH JCITSRDR
• Keywords: Business income; Earning of tax free income
• 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.1559/KOL/2018 ASSESSMENT YEAR:2014-15 DCIT, CIRCLE-12(1), AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, 7 TH FLOOR, KOLKATA- 700001 / V/S . M/S MEDHAWI TRADERS LTD., 2/6, SARAT BOSE ROAD, MINTO PARK, KOLKATA-700 020 [ PAN NO.AABCM 7035 M ] /APPELLANT .. /RESPONDENT /BY APPELLANT NONE /BY RESPONDENT SHRI C.J.SINGH, JCIT, SR-DR /DATE OF HEARING 06-03-2019 /DATE OF PRONOUNCEMENT 22-03-2019 /O R D E R THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2014-15, ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-4, KOLKATAS O RDER DATED 25.04.2018 PASSED IN CASE NO.272/CIT(A)-4/16-17, INVOLVING PROCEEDINGS U /S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD LEARNED SENIOR DEPARTMENTAL REPRESENTATIVE VE HEMENTLY REITERATING THE REVENUES PLEADINGS. THE ASSESSEE HAS NOT COME PRES ENT DESPITE THE FACT THAT THE REGISTRY HAS ISSUED AN RPAD NOTICE DATED 15.01. 2019. IT IS ACCORDINGLY PROCEEDED EX PARTE . 2. THE REVENUES FIRST SUBSTANTIVE GROUND SEEKS TO RESTORE THE ASSESSING OFFICERS ACTION DELETING SEC. 14A R.W.S. 8D DISALLOWANCE OF 151,25,417/- REGARDING ASSESSEES EXEMPT INCOME. IT TRANSPIRES AT THE OUTSET THAT THE ASSESSEE HAS NOT DERIVED ANY EXEMPT INCOME IN THE IMPUGNED ASSESSMENT YEAR. SUFFICE TO SAY, HON'BLE JURISDICTIONAL HIGH ITA NO.1559/KOL/2018 A.Y. 2014-15 DCIT, CIR-12(1), KOL. VS. M/S MEDHAWI TRADERS LT D. PAGE 2 COURT IN CIT VS. M/S ASHIKA GLOBAL SECURITIES LTD ITAT 100 OF 2014 GA NO.2122 OF 2014 DECIDED ON 11.06.2018 HOLDS THAT SEC. 14A R.W.S. 8 D DISALLOWANCE PROVISION DOES NOT APPLY IN ABSENCE OF EXEMPT INCOME. I THERE FORE DECLINE REVENUES FORMER SUBSTANTIVE GROUND. 3. NEXT COMES THE ASSESSING OFFICERS ACTION TREATI NG ASSESSEES INTEREST INCOME ON FIXED DEPOSIT / REFUND AMOUNTING TO 21,60,072/- AS INCOME FROM OTHER SOURCES THAN BUSINESS INCOME AS REVERSED DURING THE COURSE OF LOWER APPELLATE PROCEEDINGS. IT HAS COME ON RECORD THAT THIS ASSESSEE IS AN NBFC EN GAGED IN MONEY LENDING / INTEREST EARNING BUSINESS. I CONCLUDE IN THESE PECULIAR FACT S THAT THE IMPUGNED INTEREST INCOME HAS RIGHTLY BEEN TREATED AS BUSINESS INCOME THAN IN COME FROM OTHER SOURCES IN THE CIT(A)S FINDINGS UNDER CHALLENGE. THE REVENUES BO TH SUBSTANTIVE GROUNDS STAND DECLINED ACCORDINGLY. 4. THIS REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 22/03/2019 SD/- (S.S. GODARA) JUDICIAL MEMBE R KOLKATA, *DKP/SR.PS - 22/03/2019 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-DCIT, CIRCLE-12(1), P-7, CHOWRINGHEE SQ. 7 TH FL, KOLKATA-69 2. /RESPONDENT-M/S MEDHAWI TRADERS LTD. 2/6, SARAT BOS E ROAD, MINTO PARK, KOLKAT-20 3. ' % / CONCERNED CIT 4. % - / CIT (A) 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORDER/ , ',