Dream Dealcom Pvt. Ltd., Kolkata V. I.T.O.Ward-6(1), Kolkata

ITA 1812/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9381 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 31-07-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA
• Assessee Lawyers: VINOD KUMAR JAIN
• Keywords: Earning of tax free income; Set aside
• Section: 14A; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA SMC BENCH, KOLKATA (BEFORE SRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER) ITA NO. 1812/KOL/2019 ASSESSMENT YEAR: 2011-12 DREAM DEALCOM PVT. LTD..............................................................................APPELLANT C/O. RSVPC & COMPANY 41A, AJC BOSE ROAD SUITE NO. 613 6 TH FLOOR KOLKATA 700 017 [PAN : AADCD 4533 D] VS. INCOME TAX OFFICER, WARD-6(1), KOLKATA..............................................RESPONDENT APPEARANCES BY: SHRI VINOD KUMAR JAIN, APPEARED ON BEHALF OF THE ASSESSEE. SHRI JAYANTA KHANRA, JCIT SR. D/R, APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : DECEMBER 10 TH , 2019 DATE OF PRONOUNCING THE ORDER : JANUARY 8 TH , 2020 ORDER PER J. SUDHAKAR REDDY, AM :- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 2, KOLKATA, (HEREINAFTER THE LD.CIT(A)), PASSED U/S. 250 OF THE INCOME TAX ACT, 1961 (THE ACT), DT. 21/08/2017, FOR THE ASSESSMENT YEAR 2011-12. 2. AT THE OUTSET WE FIND THAT THERE IS A DELAY OF 85 (EIGHTY FIVE) DAYS IN FILING OF THIS APPEAL BY THE ASSESSEE. AFTER PERUSING THE PETITION FOR CONDONATION, WE ARE CONVINCED THAT THE ASSESSEE WAS PREVENTED BY SUFFICIENT CAUSE FROM FILING THE APPEAL ON TIME. HENCE THE DELAY IS CONDONED AND THE APPEAL IS ADMITTED. 3. THE ONLY ISSUE THAT ARISES FOR OUR ADJUDICATION IS WHETHER THE DISALLOWANCE U/S 14A R.W.R. 8D (III) OF THE INCOME TAX RULES, 1962 (RULES), JUSTIFIED IN LAW. THE LD. CIT(A) HAS PASSED AN EX-PARTE ORDER. THE LD. COUNSEL FOR THE ASSESSEE SUBMITS THAT, NO EXEMPT INCOME WAS EARNED DURING THE YEAR AND HENCE NO DISALLOWANCE CAN BE MADE U/S 14A R.W.R. 8D (III). HE RELIES ON THE JUDGEMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. M/S. ASHIKA GLOBAL SECURITIES LTD. IN ITAT 100 OF 2014 & GA 2122 OF 2014 . 3.1. THE LD. D/R SUBMITS THAT THE FACT WHETHER THE ASSESSEE HAS EARNED EXEMPT INCOME OR NOT HAS TO BE VERIFIED. 4. IN VIEW OF THE ABOVE SUBMISSION, WE SET ASIDE THE MATTER TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO VERIFY WHETHER THE ASSESSEE HA INCOME DURING THE YEAR. IF IT HAS NOT EARNED ANY EXEMPT INCOME, THEN NO DISALLOWANCE CAN BE MADE U/S 14A OF THE ACT, HAS HELD BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF ASHIKA GLOBAL SECURITIES LTD. (SUPRA). 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. KOLKATA, THE DATED : 08.01.2020 {SC SPS} COPY OF THE ORDER FORWARDED TO: 1. DREAM DEALCOM PVT. LTD C/O. RSVPC & COMPANY 41A, AJC BOSE ROAD SUITE NO. 613 6 TH FLOOR KOLKATA 700 017 2. INCOME TAX OFFICER, WARD- 6(1), KOLKATA 3. CIT(A)- 4. CIT- , 5. CIT(DR), KOLKATA BENCHES, KOLKATA. 2 IN VIEW OF THE ABOVE SUBMISSION, WE SET ASIDE THE MATTER TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO VERIFY WHETHER THE ASSESSEE HA S EARNED ANY EXEMPT INCOME DURING THE YEAR. IF IT HAS NOT EARNED ANY EXEMPT INCOME, THEN NO DISALLOWANCE CAN BE MADE U/S 14A OF THE ACT, HAS HELD BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE ASHIKA GLOBAL SECURITIES LTD. (SUPRA). RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. KOLKATA, THE 8 TH DAY OF JANUARY, 2020. SD/- [ J. SUDHAKAR REDDY ] ACCOUNTANT MEMBER 6(1), KOLKATA 5. CIT(DR), KOLKATA BENCHES, KOLKATA. ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES ITA NO. 1812/KOL/2019 ASSESSMENT YEAR: 2011-12 DREAM DEALCOM PVT. LTD. IN VIEW OF THE ABOVE SUBMISSION, WE SET ASIDE THE MATTER TO THE FILE OF THE S EARNED ANY EXEMPT INCOME DURING THE YEAR. IF IT HAS NOT EARNED ANY EXEMPT INCOME, THEN NO DISALLOWANCE CAN BE MADE U/S 14A OF THE ACT, HAS HELD BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES