Durga Projects Incorporation, Kolkata V. A.C.I.T.,Circle-34, Kolkata

ITA 158/KOL/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9932 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 06-02-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAL
• Assessee Lawyers: MANISH TIWARI
• Keywords: Earning of tax free income; Proportionate interest; Rule 8D
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D (VIRTUAL COURT HEARING), BENCH KOLKATA BEFORE SHRI P.M. JAGTAP, V.P & SHRI S. S. GODARA, JM ./I.T.A NO.158/KOL/2020 ( [ [ / ASSESSMENT YEAR: 2015-16) DURGA PROJECT INCORPORATION, KOLKATA 16/1A, ABDUL HAMID STREET, 5 TH FLOOR, KOLKATA-1. VS. ACIT, CIRCLE-34, KOLKATA ./ ./PAN/GIR NO.: AAFFD0572M (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI MANISH TIWARI, CA RESPONDENT BY : SHRI SUPRIYO PAL, JCIT / DATE OF HEARING : 08/06/2020 /DATE OF PRONOUNCEMENT : 19/06/2020 / O R D E R PER SHRI S. S. GODARA: THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2015-16 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (A) - 10, KOLKATA DATED 13.12.2017 PASSED IN CASE NO.CIT(A), KOLKATA-10/10441/2017-18 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. WE NOTICE AT THE OUTSET THAT BOTH THE LEARNED LOWER AUTHORIZES HAVE INVOKED SECTION 14A DISALLOWANCE INVOLVING PROPORTIONATE INTEREST AND ADMINISTRATIVE EXPENSES HEAD(S) OF RS.6,27,824/- & RS.75,000/-; RESPECTIVELY UNDER 2 ND AND 3 RD LIMB OF RULE 8D(II) OF THE INCOME TAX RULES. THE ASSESSEES ONLY CASE IS THAT THE IMPUGNED DISALLOWANCE DOES NOT COME INTO PLAY IN ABSENCE OF EXEMPT INCOME DERIVED IN THE RELEVANT PREVIOUS YEAR. HONBLE JURISIDICITONAL HIGH COURTS DECISION IN CIT VS. ASHIKA GLOBAL SECURITIES LTD. ITA 100 OF 2014 GA NO.2122 OF 2014 DECIDED ON 11.06.2018 HOLDS THAT SECTION 14A R.W.R. 8D DOES NOT APPLY IN ABSENCE I.T.A NO.158/KOL/2020 DURGA PROJECT INCORPORATION, KOLKATA PAGE | 2 OF ANY SUCH EXEMPT INCOME. LEARNED DEPARTMENTAL REPRESENTATIVE ON THE OTHER HAND SUBMITTED THAT THE INSTANT SOLE ISSUE REQUIRES FACTUAL VERIFICATION AT THE ASSESSING OFFICERS END. 3. AFTER GIVING OUR THOUGHTFUL CONSIDERATION TO THE FOREGOING SOLE ISSUE RAISED IN THE INSTANT LIS, WE DEEM IT APPROPRIATE TO RESTORE THE SAME BACK TO THE ASSESSING OFFICER FOR FRESH FACTUAL VERIFICATION SINCE THERE IS NO CLARITY IN THE ASSESSMENT FINDINGS AS TO WHETHER THE ASSESSEE HAD DERIVED ANY EXEMPT INCOME OR NOT. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE IS RESTORED TO THE FILE OF ASSESSING OFFICER THEREFORE. 4. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. ORDER IS PRONOUNCED IN THE OPEN COURT ON 19.06.2020. SD/- ( P. M. JAGTAP ) SD/- (S. S. GODARA) VICE-PRESIDENT JUDICIAL MEMBER /KOLKATA; / DATE:19/06/2020 RS / COPY OF THE ORDER FORWARDED TO : TRUE COPY BY ORDER ASSISTANT REGISTRAR, I.T.A.T, KOLKATA BENCHES, KOLKATA . 1. THE APPELLANT- DURGA PROJECT INCORPORATION, KOLKATA 2. THE RESPONDENT- ACIT, CIRCLE-34, KOLKATA 3. ( ) / THE CIT(A), KOLKATA [SENT THROUGH EMAIL] 4. / CIT 5. , , / DR, ITAT, KOLKATA [SENT THROUGH EMAIL] 6. [ / GUARD FILE.