Barooahs & Associates Private Limited , Kolkata V. DCIT, Circle - 4(1) , Kolkata

ITA 40/KOL/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5797 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 09-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARTHA MUKHERJEE AR SHR
• Section: 14A; 250; 113; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA B BENCH, KOLKATA (BEFORE SRI J. SUDHAKAR REDDY, HONBLE ACCOUNTANT MEMBER & SRI ABY T. VARKEY, HONBLE JUDICIAL MEMBER) ITA NO. 40/KOL/2019 ASSESSMENT YEAR: 2013-14 BAROOAHS & ASSOCIATES PRIVATE LIMITED..............................................................APPELLANT 113 PARK STREET 9 TH FLOOR KOLKATA 700 016 [PAN : AABCB 1007 C] VS. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -4 (1), KOLKATA........................................RESPONDENT APPEARANCES BY: SHRI PARTHA MUKHERJEE, A/R, APPEARED ON BEHALF OF THE ASSESSEE. SHRI MAISH KANOJIA, CIT, D/R, APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : APRIL 19 TH , 2021 DATE OF PRONOUNCING THE ORDER : APRIL 22 ND , 2021 ORDER PER J. SUDHAKAR REDDY, AM :- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)- 2, KOLKATA (HEREINAFTER THE LD. CIT(A)), PASSED U/S. 250 OF THE INCOME TAX ACT, 1961 (THE ACT), DT. 29/11/2018, FOR THE ASSESSMENT YEAR 2013-14. 2. AFTER HEARING RIVAL CONTENTIONS WE FIND THAT THE ASSESSING OFFICER HAS DISALLOWED EXPENDITURE U/S 14A OF THE ACT BY RECORDING AS FOLLOWS:- IT WAS EVIDENT FROM THE RELEVANT BALANCE SHEETS OF THE ASSESSEE THAT THE ASSETS SHOWN THEREIN INCLUDED A SIGNIFICANT AMOUNT OF INVESTMENTS. BESIDES, THE ASSESSEE CLAIMED TO HAVE EARNED AN AMOUNT OF DIVIDEND OF RS.2,46,352/- IN THE PREVIOUS YEAR UNDER CONSIDERATION . LOGICALLY, RELATED EXPENSES OUGHT TO HAVE BEEN ADDED BACK BY THE ASSESSEE IN ITS COMPUTATION OF TOTAL INCOME IN ACCORDANCE WITH THE PROVISIONS OF SECTION 14A OF THE ACT. BUT NO SUCH ADDITION WAS MADE BY THE ASSESSEE OF ITS OWN ACCORD.[EMPHASIS OURS] 3. WHILE DOING SO, HE HAS NOT EXCLUDED THIS DIVIDEND INCOME FROM THE TOTAL INCOME BY APPLYING SECTION 10(34) OF THE ACT. THIS MISTAKE IS APPARENT ON RECORD. BOTH THE ASSESSING OFFICER AS WELL AS THE LD. CIT(A) ARE IN ERROR IN NOT RECTIFYING THIS MISTAKE. HENCE, WE DIRECT THE ASSESSING OFFICER TO EXCLUDE THE DIVIDEND INCOME OF RS.2,46,352/- FROM THE TOTAL INCOME AS THE SAME CANNOT BE BROUGHT TO TAX IN VIEW OF SECTION 10(34) OF THE ACT. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. KOLKATA, THE 22 ND DAY OF APRIL, 2021. SD/- SD/- [ ABY T. VARKEY ] [ J. SUDHAKAR REDDY ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 22.04.2021 {SC SPS} COPY OF THE ORDER FORWARDED TO: 1. BAROOAHS & ASSOCIATES PRIVATE LIMITED 113 PARK STREET 9 TH FLOOR KOLKATA 700 016 2. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 3. CIT(A)- 4. CIT- , 5. CIT(DR), KOLKATA BENCHES, KOLKATA. 2 BAROOAHS & ASSOCIATES PRIVATE LIMITED BAROOAHS & ASSOCIATES PRIVATE LIMITED DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -4 (1), KOLKATA 5. CIT(DR), KOLKATA BENCHES, KOLKATA. ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES ITA NO. 40/KOL/2019 ASSESSMENT YEAR: 2013-14 BAROOAHS & ASSOCIATES PRIVATE LIMITED TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES