ITO, Ward-4(2), Kolkata, Kolkata V. M/s. Madhumalati Merchandies P. Ltd., Kolkata

ITA 1785/KOL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 0580 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-12-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 03-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH : KOLKATA [BEFORE SHRI J.SUDHAKAR REDDY, AM ] I.T.A NO. 1785/KOL/20 17 ASSESSMENT YEAR : 2011-1 2 ITO, WARD-4(2), KOLKATA -VS- M/S MADHUMALATI MERC HANDISE PVT. LTD. [PAN: AABCM 7622 G] (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI SANJAY MUKH ERJEE, ADDL. CIT FOR THE RESPONDENT : NONE DATE OF HEARING : 28.12.2017 DATE OF PRONOUNCEMENT : 28.12.2017 ORDER THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDE R OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-15, KOLKATA [ IN SHORT THE LD CITA] DATED 09.05.2017 AGAINST THE ORDER PASSED BY THE ITO, WARD-7(1), KOLKATA [ I N SHORT THE LD AO] UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE A CT) DATED 28.02.2014 FOR THE ASSESSMENT YEAR 2011-12. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE. 3. AFTER HEARING THE LD. DR, I DISPOSE OF THIS CASE ON MERITS QUA THE ASSESSEE BY HOLDING AS FOLLOWS. 4. THE LD. CIT(A) HAS RIGHTLY DELETED THE DISALLOWA NCE U/S 14A AS THERE IS NO EXEMPT INCOME EARNED BY THE ASSESSEE DURING THE YEAR. THE JUDGMENT OF THE HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. M/S HOLCIM INDIA PVT. LTD. (2014) 90 CCH 0081 WAS RIGHTLY APPLIED. HENCE, THIS GROUND OF THE REVENUE IS DISMISSED. 2 ITA NO.1785/KOL/2017 M/S MADHUMALATI MERCHANDISE PVT . LTD. A.YR.2011-12 2 5. THE SECOND GROUND IS ON THE ADDITION MADE U/S 2( 22)E THE LD. CIT(A) HELD THAT SECTION 2(22)(E) IS NOT ATTRACTED AS THE ASSESSEE I S NOT REGISTERED SHAREHOLDER AND HENCE THE ADDITION IS BAD IN LAW. THIS PROPOSITION IS UPH ELD BY THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. MADHU HOUSING AND DEVELOPMENT C OMPANY JUDGMENT DATED 20.10.2017. HENCE, THIS GROUND OF THE REVENUE IS D ISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 28.12.2017 SD/- [J. SUDHAKAR REDDY] ACCOUNTANT MEMBER DATED : 28.12.2017 SB, SR. PS COPY OF THE ORDER FORWARDED TO: 1. ITO, WD-4(2) KOLKATA, 7 TH FLOOR, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-69. 2. M/S MADHUMALATI MERCHANDISE PVT. LTD., 19, K.C.R OAD, KOLKATA-700002 3..C.I.T.(A)- , KOLKATA 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER SENIOR PRIVAT E SECRETARY HEAD OF OFFICE/D.D.O., ITAT, KOLKATA BENCHE S