M/s Parichiti Software Pvt. Ltd., Kolkata V. I.T.O.,Ward-5(2), Kolkata

ITA 1995/KOL/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0223 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 26-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA
• Assessee Lawyers: MANOJ KATARUKA
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC, BENCH KOLKATA BEFORE SHRI S. S. GODARA, JM ./I.T.A NO.1995/KOL/2019 ( [ [ / ASSESSMENT YEAR: 2013-14 M/S. PARICHITI SOFTWARE PVT. LTD. 219B, OLD CHINA BAZAR STREET, 2 ND FLOOR, ROOM NO. 5, KOLKATA 700 001. VS. ITO, WARD 5(2), KOLKATA ./ ./PAN/GIR NO.: AABCP 9931 D (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI MANOJ KATARUKA, ADVOCATE RESPONDENT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR / DATE OF HEARING : 24/12/2019 /DATE OF PRONOUNCEMENT : 31/12/2019 / O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2016-17 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (A)-2, KOLKATA DATED 05.08.2019 PASSED IN CASE NO. 10234/CIT(A)-2/2017-18 INVOLVING PROCEEDINGS U/S 154 OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILES PERUSED. 2. IT TRANSPIRES DURING THE COURSE OF HEARING THAT THE SOLE ISSUE RAISED ON MERITS IS THAT OF CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION DISALLOWING / ADDING AN AMOUNT OF RS. 26,43,535/- U/S 14A READ WITH RULE 8D OF THE ACT. 3. IT FURTHER EMERGES THAT THE CIT(A) HAS REFUSED TO CONDONE 11 DAYS DELAY IN FILING OF THE LOWER APPEAL. THE ASSESSEE HAD FILED ITS CONDONATION PETITION STATING REASONS OF DELAY WHICH HAVE BEEN REJECTED IN THE CIT(A) ORDER. HONBLE APEX COURTS LANDMARK DECISION IN COLLECTOR, LAND ACQUISITION VS. MST. KATIJI (1987) 167 ITR 471 (SC) SETTLED THE LAW LONG BACK THAT THE CAUSE OF SUBSTANTIAL JUSTICE MUST PREVAIL OVERALL TECHNICAL ASPECTS. I, THEREFORE, GO BY THE I.T.A NO.1995/KOL/2019 M/S. PARICHITI SOFTWARE PVT. LTD. PAGE | 2 VERY REASONING TO CONDONE THE IMPUGNED DELAY OF 11 DAYS IN FILING OF THE LOWER APPEAL HEREINABOVE. THE CIT(A)S FINDING TO THIS EFFECT ARE REVERSED. 4. NEXT COMES THE CORRECTNESS OF SECTION 14A READ WITH RULE 8D DISALLOWANCE OF RS. 26,43,535/-. SUFFICE TO SAY, THE ASSESSEE HAS NOT DERIVED ANY EXEMPT INCOME IN THE IMPUGNED ASSESSMENT YEAR. HONBLE JURISDICTIONAL HIGH COURTS DECISION IN CIT VS ASHIKA GLOBAL SECURITIES ITAT 100OF 2014, GA 2122 OF 2014 DATED 11.06.2017 HOLDS THAT THE IMPUGNED DISALLOWANCE PROVISION DOES NOT APPLIES IN ABSENCE OF ANY EXEMPT INCOME. I THEREFORE DELETE THE IMPUGNED SECTION 14A DISALLOWANCE FOR THIS PRECISE REASON ALSO. 5. THE ASSESSEES APPEAL IS ALLOWED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 31.12.2019. SD/- (S. S. GODARA) JUDICIAL MEMBER /KOLKATA; / DATE: 31/12/2019 (BISWAJIT, SR.PS) / COPY OF THE ORDER FORWARDED TO : TRUE COPY BY ORDER ASSISTANT REGISTRAR, I.T.A.T, KOLKATA BENCHES, KOLKATA . 1. THE APPELLANT - M/S. PARICHITI SOFTWARE PVT. LTD. 2. THE RESPONDENT- ITO, WARD 5(2), KOLKATA 3. ( ) / THE CIT(A), KOLKATA [SENT THROUGH EMAIL] 4. / CIT 5. , , / DR, ITAT, KOLKATA [SENT THROUGH EMAIL] 6. [ / GUARD FILE.