Dr. Partha Biswas , Kolkata V. DCIT, Circle - 22, Kolkata , Kolkata

ITA 335/KOL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7539 (ITAT-KOLKATA)
• Duration Of Justice: 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 26-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: AGAINST DATED PASSED
• Keywords: Earning of tax free income
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH D, KOLKATA BEFORE SH.S.S.VISWANETHRA RAVI, JUDICIAL MEMBER & SH. A.L.SAINI, ACCOUNTANT MEMBER ITA NO.335/KOL/2018 (ASSESSMENT YEAR-2014-15) ORDER PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER THIS APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 08.12.2017 PASSED BY CIT(A)-6, KOLKATA U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT ACT) FOR AY 2014-15. 2. THE ONLY ISSUE IS TO DECIDED AS TO WHETHER THE CIT(A) IS JUSTIFIED IN CONFIRMING THE DISALLOWANCE MADE BY THE AO U/S 14A OF THE ACT R.W. RULE 8D(III) OF THE ITAT RULES. 3. HEARD BOTH PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE CONTENTION OF THE LD.AR WAS THAT THE ASSESSEE EARNED EXEMPT INCOME OF RS.9,649/- AND THE AO MADE DISALLOWANCE UNDER RULE 8D(2)(I) & (III) TO AN EXTENT OF RS.76,014/- WHICH IS EXCESS AND UNREASONABLE. LD.AR PLACED RELIANCE ON THE ORDER OF CO-ORDINATE BENCH IN THE CASE OF SH. SAGARMAL MALL VS ACIT IN ITA NO.1476/KOL/2011 DATED 06.04.2016 AND BY REFERRING TO PARA 9 ON THE SAID ORDER, ARGUED THAT THE AO OUGHT TO HAVE TAKEN THE INVESTMENTS WHICH YIELDED EXEMPT INCOME FOR COMPUTING THE DISALLOWANCE OF EXPENDITURE FOR THE PURPOSE OF SECTION 14A OF THE ACT. WE FIND THE CO-ORDINATE BENCH OF DR. PARTHA BISWAS, HOUSE NO.4, CLUSTER-VII, PURBACHAL, SALT LAKE CITY, KOLKATA-700097. PAN-AGUPB7947B VS DCIT, CIRCLE-22, 54/1, R.A.K.ROAD, KOLKATA-700016. (APPELLANT) (RESPONDENT) APPELLANT BY SH. H.V.BHARDWAJ, FCA & V.N.PUROHIT, FCA RESPONDENT BY SH. SANKAR HALDER, SR.DR DATE OF HEARING 13.12.2018 DATE OF PRONOUNCEMENT 16.01.2019 ITA NO.335/KOL/2018 (ASSESSMENT YEAR-2014-15) PAGE | 2 THIS TRIBUNAL IN THE CASE OF SHRI SAGARMAL MALL (SUPRA) BY PLACING RELIANCE IN THE CASE OF REI AGRO LIMITED OF HONBLE HIGH COURT OF CALCUTTA REMANDED THE MATTER TO THE FILE OF AO FOR A LIMITED PURPOSE OF RE-COMPUTING THAT THE DISALLOWANCE U/S 14A BY EXCLUDING THE INVESTMENT ON WHICH NO EXEMPT INCOME WAS ACTUALLY RECEIVED BY THE ASSESSEE. THEREFORE, TAKING INTO CONSIDERATION THE SAID FACTS AND THE SUBMISSIONS OF LD.DR & LD.AR AND IN THE INTEREST OF JUSTICE, WE DEEM IT PROPER TO REMAND THE MATTER TO THE FILE OF AO FOR A LIMITED PURPOSE OF COMPUTATION OF EXPENDITURE IN TERMS OF INVESTMENT WHICH YIELDED EXEMPT INCOME. THE ASSESSEE IS LIBERTY TO FILE EVIDENCES, IF ANY, IN SUPPORT OF HIS CONTENTION. THUS, GROUND RAISED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 16.01.2019. SD/- SD/- (A.L.SAINI) (S.S.VISWANETHRA RAVI) ACCOUNTANT MEMBER JUDICIAL MEMBER [ DATE:- 16.01.2019 *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT- DR. PARTHA BISWAS, HOUSE NO.4, CLUSTER-VII, PURBACHAL, SALT LAKE CITY, KOLKATA-700097. 2. RESPONDENT- DCIT, CIRCLE-22, 54/1, R.A.K.ROAD, KOLKATA-700016. 3. CIT-KOLKATA 4. CIT(APPEALS)-KOLKATA 5. DR: ITAT -KOLKATA BENCHES BY ORDER AR/H.O.O ITAT, KOLKATA