DCIT, Circle - 5, Kolkata, Kolkata V. M/s. SPT Securities Ltd., Kolkata

ITA 191/KOL/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54608 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2011
• Appeal Filed By: Department
• Bench Allotted: A
• Next Hearing Date: 29-06-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 02-02-2011
• Court: TRIBUNAL
• Department Lawyers: S K ROY
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH A , KOLKATA [ () , , . .. . ! ! ! !. .. . , , , , '# ] ]] ] [BEFORE HONBLE SRI MAHAVIR SINGH, JM & HONBLE S RI C. D. RAO, AM] % % % % /ITA NO.191/KOL/2011 &' ()/ ASSESSMENT YEAR : 2007-08 (+, / APPELLANT ) - & - ( ./+, /RESPONDENT) D.C.I.T., CIRCLE-5, M/S.SPT SECURITIES LTD. KOLKATA -VERSUS- KOLKATA (PAN:AADCS 8015 P) +, 0 1 '/ FOR THE APPELLANT: SHRI S.K.ROY ./+, 0 1 '/ FOR THE RESPONDENT: SHRI SUBASH AGARWAL 2&3 0 !# /DATE OF HEARING : 02.11.2011. 4( 0 !# /DATE OF PRONOUNCEMENT : 02.11.2011 '5 / ORDER ( (( ( . .. . ! ! ! !. .. . ) )) ), , , , '# PER SHRI C.D.RAO, AM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST ORDE R DATED 01.11.2010 OF THE CIT(A)-VI, KOLKATA PERTAINING TO A.YR. 2007-08. 2. THE ONLY ISSUE RAISED BY THE REVENUE IS RELATING TO RESTRICTING THE DISALLOWANCE TO 1% OF DIVIDEND INCOME U/S 14A OF THE IT ACT. 3. THE BRIEF FACTS OF THIS ISSUE ARE THAT ASSESSEE HAS EARNED DIVIDEND INCOME OF RS.3,50,430/- THE ASSESSEE SUBMITTED 14A DISALLOWA NCE AS PER RULE 8D AND CALCULATED RS.28,66,051/- AS EXPENDITURE RELATED TO EARNING OF EXEMPT INCOME. BUT THE ASSESSEE CONTENDED THAT THE DISALLOWANCE SHOULD BE RESTRICTED TO DIVIDEND INCOME. THE CONTENTION OF THE ASSESSEE IS NOT ACCEPTED. THE AO RELYING ON THE DECISIONS OF HONBLE (SPL.BENCH)MUMBAI IN THE CASE OF M/S.DAGA CAPITAL M ANAGEMENT PVT. LTD. HAS DISALLOWED AN AMOUNT OF RS.28,66,051/- U/S 14A OF T HE IT ACT BY APPLYING RULE 8D OF IT RULES. 3.1. ON APPEAL LD. CIT(A) HAS RESTRICTED THE DISALL OWANCE TO 1% OF THE DIVIDEND INCOME AT RS.3,50,430/- AND THUS REDUCED THE DISALL OWANCE U/S14 A OF THE IT ACT TO RS.3,504 FROM RS.28,66,051/- MADE BY AO BY RELYING ON THE DECISION OF THE ITAT, KOLKATA. 2 3.2. AGGREIVED BY THIS THE REVENUE IS IN APPEAL BEF ORE US. 4. THE LD. DR APPEARING ON BEHALF OF THE REVENUE RE LIED ON THE ORDERS OF AO. ON THE OTHER HAND, THE LD. COUNSEL APPEARING ON BEHALF OF ASSESSEE RELIED ON THE ORDERS OF LD. CIT(A). 5. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CAREF UL PERUSAL OF MATERIALS AVAILABLE ON RECORD IT IS OBSERVED THAT BY SUSTAINI NG THE DISALLOWANCE U/S 14A AT 1% OF THE DIVIDEND INCOME LD. CIT(A) HAS FOLLOWED THIS TR IBUNALS DECISION. THEREFORE, WE FIND NO INFIRMITY IN THE ORDERS OF LD. CIT(A) TO BE INTERFERED WITH. HENCE WE DISMISS THE APPEAL OF THE REVENUE. 6. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMI SSED. ORDER PRONOUNCED IN THE OPEN COURT ON 02.11.2011. SD/- SD/- [ , ] [ . !., '# ] [ MAHAVIR SINGH ] [ C. D. RAO ] JUDICIAL MEMBER ACCOUNTANT MEMBER ( (( (!# !# !# !#) )) ) DATE: 02.11.2011. R.G.(.P.S.) '5 0 .6 7'6(8- COPY OF THE ORDER FORWARDED TO: 1. M/S. SPT SECURITIES LTD., 16, N.S.ROAD, KOLKATA-700 001. 2 THE D.C.I.T., CIRCLE-5, KOLKATA 3. THE CIT, 4. THE CIT(A)-CENTRAL-VI, KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA /6 ./ TRUE COPY, '5&2/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES