Pawan Kumar Agarwal , Bankura V. ACIT, Circle - 3, , Bankura

ITA 2258/KOL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1431 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 02-11-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: C J SINGH
• Assessee Lawyers: D K SO N
• Keywords: Earning of tax free income; Rule 8D
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH : KOLKATA [BEFORE HONBLE SHRI S.S. GODARA, JM] I.T.A NO. 2258/KOL/20 18 ASSESSMENT YEAR : 2012-1 3 PAWAN KUMAR AGARWAL VS- ACIT, CIRCLE-3, K OLKATA [PAN: ACZPA 0405 C] (APPELLANT) ( RESPONDENT) FOR THE APPELLANT : SHRI D.K. SO N, ADVOCATE FOR THE RESPONDENT : SHRI C.J. SINGH, JC IT, SR. DR DATE OF HEARING : 04.03.2019 DATE OF PRONOUNCEMENT : 22.03.2019 ORDER 1. THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2012- 13 IS DIRECTED AGAINST THE CIT(A)- DURGAPURS ORDER DATED 23.05.2018 PASSED IN CASE N O. 17/CIT(A)/DGP/2015-16 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 ( IN SHORT THE ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. IT EMERGES AT THE OUTSET THAT THE ASSESSEES INS TANT APPEAL SUFFERS FROM 63 DAYS DELAY IN FILING. THE ASSESSEE HAS PLACED ON RECORD HIS ME DICAL CERTIFICATE IN SUPPORT OF CONDONATION PETITION. THE REVENUE IS FAR ENOUGH IN NOT DISPUTING CORRECTNESS AMOUNT. I ACCORDINGLY TREAT THE IMPUGNED 63 DAYS TO BE NEITHE R INTENTIONAL NOR DELIBERATE. THE CASE IS NOW TAKEN UP FOR ADJUDICATION ON MERITS. 3. I COME TO THE FORMER ISSUE OF SECTION 14A READ W ITH RULE 8D DISALLOWANCE OF RS. 1,68,523/- MADE IN THE COURSE OF ASSESSMENT AS CONF IRMED THE LOWER APPELLATE PROCEEDINGS. SUFFICE TO SAY, THE ASSESSEE HAS DERIV ED EXEMPT INCOME AMOUNTING TO RS. 2 ITA NO.2258/KOL/2018 PAWAN KUMA R AGARWAL A.YR. 2012-13 2 30,692/- ONLY FROM DIVIDENDS CLAIMED AS EXEMPT U/S 10(34) OF THE ACT. WITHOUT GOING MUCH INTO LEGALITY AND MERITS OF THE ASSESSEES GR IEVANCE, I DEEM IT APPROPRIATE TO RESTRICT THE IMPUGNED DISALLOWANCE TO THE EXTENT OF EXEMPT INCOME ONLY AS PER HONBLE DELHI HIGH COURT DECISION IN THE CASE OF JOINT INVE STMENTS PVT. LTD. VS. CIT IN I.T.A. NO. 117/2015 DATED 25.02.2015. BOTH THE LEARNED REPRESE NTATIVES ARE FAIR ENOUGH IN NOT DISPUTING THIS LEGAL POSITION QUA THE IMPUGNED DISA LLOWANCE . I THEREFORE RESTRICT THE IMPUGNED DISALLOWANCE TO THE EXTENT OF RS. 30,692/- ONLY. 4. NEXT COMES TO ASSESSEES LATTER SUBSTANTIVE GROU ND SEEKING TO DELETE 2% DISALLOWANCE OF VARIOUS EXPENSES CONFIRMED BY THE LD. CIT(A) THE REBY PARTLY UPHOLDING THE ASSESSING OFFICERS FINDINGS REJECTING THE SAID EX PENSES TO THE EXTENT OF 10% ON ESTIMATION BASIS. IT TRANSPIRES DURING THE COURSE O F HEARING NEITHER THE LOWER AUTHORITIES ARE DRAWN ANY COMPARATIVE CHART OF THE IMPUGNED CL AIM IN PRECEDING OR SUCCEEDING ASSESSMENT YEARS NOR THE ASSESSEE HAS NOT BEEN ABLE TO FULLY PROVE HIS CASE. I TAKE INTO ACCOUNT ALL THESE FACTS TO RESTRICT THE IMPUGNED DI SALLOWANCE @ 2% TO 1% ONLY WITH A RIDER THAT THE SAME SHALL NOT BE TREATED AS A PREC EDENT IN ANY OTHER ASSESSMENT YEAR. THIS LATTER SUBSTANTIVE GROUND IS TREATED AS PARTLY ACCE PTED TO THE EXTENT OF 1% ONLY. 4. THIS APPEAL OF THE ASSESSEE IS PARTLY ACCEPTED I N ABOVE TERMS. ORDER PRONOUNCED IN THE COURT ON 22.03.2019 SD/- [ S.S.GODARA ] JUDICIAL MEMBER DATED : 22.03.2019 SB, SR. PS 3 ITA NO.2258/KOL/2018 PAWAN KUMA R AGARWAL A.YR. 2012-13 3 COPY OF THE ORDER FORWARDED TO: 1. PAWAN KUMAR AGARWAL, SUVANKAR SARANI, P.O.& DIST . BANKURA, PIN-722101 2. ACIT, CIRCLE-3, KOLKATA 3..C.I.T(A).- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER ASS ISTANT REGISTRAR KOLKATA BENCHES