ITO, Ward - 12(1), Kolkata , Kolkata V. M/s. Renault Developers Pvt. Ltd., , Kolkata

ITA 264/KOL/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0141 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 16-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S ANKAR HALDER JCIT LD
• Section: 40(a)(ia)

Judgement Text

1 ITA NO. 264/KOL/2018 M/S. RENAULT DEVELOPERS P.LTD IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH D , KOLKATA (BEFORE SHRI S. S. VISWANETHRA RAVI, J.M. & DR.A.L.SAINI, A.M.) ITA NO. 2 64 /KOL/201 8 : ASSTT. YEAR : 201 0 - 11 I.T.O. WARD 12(1), KOLKATA VS M/S. RENAULT DEVELOPERS P.LTD PAN:AABCR 354 5B (APPELLANT) (RESPONDENT) A PPELLANT BY : SHRI S ANKAR HALDER, JCIT, LD.SR.DR RESPONDENT BY : NONE APPEARED DATE OF HEARING : 0 6 - 12 - 201 8 DATE OF PRONOUNCEMENT: 07 - 12 - 2018 ORDER PER DR. A.L.SAINI, A.M .: THE CA PTIONED APPEAL FILED BY THE REVENUE , PERTAINING TO ASSESSMENT YEAR 201 0 - 11 , IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME - TAX (APPEALS) - 4 , KOLKATA IN APPEAL NO. 236 /CIT(A) - 4 /W - 12 ( 1 )/ 13 - 14 , DATED 02 - 11 - 2017 , WHICH IN TURN ARISES OUT OF AN ORDER PASSED BY THE ASSESSING OFFICER U/S. 14 3 ( 3 ) OF THE INCOME - TAX ACT, 1961 (IN SHORT, THE ACT), DATED 2 6 - 03 - 201 3 . 2. AT THE TIME OF HEARING BEFORE US NONE APPEARED ON BEHALF OF THE ASSESSE INSPITE OF ISSUANCE OF NOTICE OF HEARING MORE THAN ONE OC CASION AND THE LD. DEPARTMENTAL REPRESENTATIVE (LD.DR) WAS PRESENT FOR THE APPELLANT REVENUE. IN THE ABSENCE OF ANY APPEARANCE BY THE ASSESSE E, THE APPEAL IS BEING DISPOSED OFF EX PARTE QUA THE ASSESSE AFTER HEARING THE LD. DR FOR THE REVENUE ON MERITS IN TERMS OF RULE 24 OF THE ITAT RULES 1963. AFTER HEARING THE LD.DR FOR THE REVENUE, WE NOTE THAT IN THE IMPUGNED ORDER OF THE LD. CIT(A), THE LD. CIT(A) DIRECTED THE AO TO VERIFY AS TO WHETHER THE DEDUCTEE HAS INCLUDED THE INTEREST INCOME IN ITS TOTAL IN COME OR NOT, IF IT IS FOUND 2 ITA NO. 264/KOL/2018 M/S. RENAULT DEVELOPERS P.LTD THAT THE DEDUCTEEE HAS INCLUDED THE INTEREST INCOME IN ITS TOTAL INCOME , THEN NO DISALLOWANCE U/S. 40(A)(IA) OF THE ACT CAN BE MADE . THEREFORE, THE LD. CIT(A) DIRECTED THE AO TO VERIFY THE FACTUAL POSITION AND ALLOW THE APPEAL O F ASSESSE E FOR STATISTICAL PURPOSES. WE NOTE THAT THE ISSUE UNDER CONSIDERATION, IN ASSESSEES CASE IS THAT WHETHER THE SECOND PROVISO TO SECTION 40(A) ( IA) IS RETROSPECTIVE IN NATURE OR NOT. WE NOTE THAT CO - ORDINATE BENCH OF THIS TRIBUNAL HAS HELD IN THE CASE OF M/S VAS ELECTRONICS, KOLKATA VS. ACIT IN ITA NO. 662/KOL/2013, ORDER DT. 24 - 11 - 2015 , THAT THE SECOND PROVISO TO SECTION 40(A)(IA) OF THE ACT IS RETROSPECTIVE IN NATURE. THEREFORE, LD. CIT(A), HAS RIGHTLY DIRECTED TO THE ASSESSING OFFICER TO VERIFY AS TO WHETHER THE DEDUCTEE HAS INCLUDED ITS INTEREST INCOME TO THE TOTAL INCOME OR NOT AND IF IT IS FOUND THAT THE DEDUCTEE INCLUDED IT IN ITS TOTAL INCOME, NO DISALLOWANCE U/S. 40(A)(IA) OF THE ACT CAN BE MADE. THAT BEING SO, WE DECLINE TO INTERFERE IN THE ORDER OF THE LD. CIT(A) , H IS ORDER ON THIS ISSUE IS HEREBY UPHELD AND THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 3 . IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 07 - 1 2 - 2018 SD/ - SD/ - ( S.S.VISWANETHRA RAVI ) (DR. A.L.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 07 - 1 2 - 2018 3 ITA NO. 264/KOL/2018 M/S. RENAULT DEVELOPERS P.LTD *PRADIP (SR.PS) COPY OF THE ORDER FORWARDED TO: 1 . THE APPELLANT/ REVENUE: INCOME TAX OFFICER, WARD 12(1), KOLKATA, 7 TH FLOOR, AAYKAR BHAWAN, P - 7 CHOWRINGHEE SQUARE, KOLKATA - 69. 2 THE RESPONDENT/ ASSESSEE: M/S. RENAULT DEVELOPERS PVT. LTD 3A, RAMMOHAN MULLICK GARDEN LANE, EM BYEPASS, KOLKATA - 10. 3. THE CIT - , 4. THE CIT(A) - , 5. DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, ASST. REGISTRAR ITAT, KOLKATA BENCHES