M/s. Chemcrown Exports Ltd., , Kolkata V. DCIT, Circle - 11, Kolkata , Kolkata

ITA 2217/KOL/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5737 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 3 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 20-10-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S HALDER
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, KOLKATA BEFORE SRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER & SRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NO. 2217 & 2218/KOL/2017 ASSESSMENT YEARS: 2011-12 & 2012-13 M/S CHEMCROWN EXPORTS LTD.......................APPELLANT [PAN :AABCC 1681 M ] DCIT, CIRCLE-11(1), KOLKATA......RESPONDENT APPEARANCES BY: SHRI SRIKUMAR BANERJEE, APPEARED ON BEHALF OF THE APPELLANT. SHRI S. HALDER, SR. DR, APPEARED ON BEHALF OF THE RESPONDENT.. DATE OF CONCLUDING THE HEARING : JANUARY 17, 2019 DATE OF PRONOUNCING THE ORDER : JANUARY 30, 2019 ORDER PER J. SUDHAKAR REDDY, ACCOUNTANT MEMBER :- BOTH THESE APPEALS FILED BY THE ASSESSEE DIRECTED AGAINST A COMMON ORDER BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-4, KOLKATA, [LD. CIT(A)] PASSED U/S. 250 OF THE INCOME TAX ACT, 1961, (THE ACT), DATED 18/08/2017, FOR THE ASSESSMENT YEARS 2011-12 & 2012-13. 2. AS THE ISSUES ARISING BOTH THESE APPEALS ARE COMMON, FOR THE SAKE OF CONVENIENCE, THEY ARE HEARD TOGETHER AND DISPOSED OFF BY WAY OF THIS COMMON ORDER. 3. HEARD RIVAL CONTENTIONS. IN BOTH THE APPEALS, THE COMMON ISSUE THAT IS ARGUED IS REGARDING RESTRICTING THE DISALLOWANCE U/S 14A OF THE ACT TO THE EXTENT OF EXEMPT INCOME EARNED. THE HONBLE JURISDICTIONAL HIGH COURT IN ITA NO.100 OF 2014 IN THE CASE OF CIT VS. ASHIKA GLOBAL SECURITIES LIMITED GA 2122 OF 2014 DECIDED ON 11.06.2018 HELD THAT, DISALLOWANCE U/S 14A OF THE ACT CANNOT EXCEED THE EXEMPT INCOME EARNED BY THE ASSESSEE. THIS JUDGMENT HAS FOLLOWED THE JUDGMENT OF THE HONBLE DELHI HIGH COURT IN THE CASE OF JOINT INVESTMENTS PVT. LTD. VS. CIT IN ITA NO.117/2015. 4. RESPECTFULLY FOLLOWING THE BINDING DECISION OF THE JURISDICTIONAL HIGH COURT ON THIS ISSUE, WE DIRECT THE ASSESSING OFFICER TO RESTRICT THE DISALLOWANCE 2 M/S CHEMCROWN EXPORTS LTD I.T.A. NO. 2217 & 2218/KOL/2017 ASSESSMENT YEARS: 2011-12 & 2012-13 U/S 14A OF THE ACT FOR BOTH THE ASSESSMENT YEARS TO THE EXTENT OF EXEMPT INCOME EARNED BY THE ASSESSEE. IN THE RESULT, THESE GROUNDS ARE ALLOWED IN PART. 5. GROUND NOS.4 & 5 FOR THE ASSESSMENT YEAR 2011-12 ARE DISMISSED AS NOT PRESSED. 6. IN THE RESULT, BOTH THE APPEALS ARE ALLOWED IN PART. KOLKATA, THE 30 TH JANUARY, 2019. SD/- SD/- [ S.S. VISWANETHRA RAVI ] [J. SUDHAKAR REDDY] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 30.01.2019 RS, SR.PS COPY OF THE ORDER FORWARDED TO: 1 . M/S CHEMCROWN EXPORTS LTD., 95, PARK STREET, 2 ND FLOOR, KOLKATA 700 016. 2 . DCIT, CIRCLE-11(1), KOLKATA. 3. CIT(A)- 4. CIT- , 5. CIT(DR), TRUE COPY B Y ORDER ASSISTANT REGISTRAR, KOLKATA BENCHES