DCIT, Cir-11, Kolkata, Kolkata V. M/s P. C. Holdings (P) Ltd., Kolkata

ITA 499/KOL/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4191 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2016
• Appeal Filed By: Department
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 21-03-2014
• Court: TRIBUNAL
• Department Lawyers: DAVID CHOWANTHU
• Assessee Lawyers: PARNASHREE BANERJEE
• Keywords: Tax effect
• Section: 14A

Judgement Text

I.T.A. NO. 499/KOL./2014 ASSESSMENT YEAR: 2009-2010 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA B BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI N.V. VASUDEVAN, JUDICIAL MEMBER I.T.A. NO. 499/KOL/ 2014 ASSESSMENT YEAR: 2009-2010 DEPUTY COMMISSIONER OF INCOME TAX,................. .....................APPELLANT CIRCLE-11, KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 -VS.- M/S. P.C. HOLDINGS (P) LIMITED,.................... .........................RESPONDENT P-24A, CIT ROAD, ENTALLY, KOLKATA-700 014 [PAN: AABCP 7519 D] APPEARANCES BY: SHRI DAVID CHOWANTHU, JCIT, SR. D.R., FOR THE DEPARTMENT MS. PARNASHREE BANERJEE, ADVOCATE, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : NOVEMBER 30, 2016 DATE OF PRONOUNCING THE ORDER : NOVEMBER 30, 2016 O R D E R PER SHRI P.M. JAGTAP, A.M .: THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-XII, KOLKATA D ATED 02.12.2013 ON THE FOLLOWING GROUNDS:- (1) THAT IS THE FACTS AND IN LAW OF THE CASE, THE LD. CIT(A) ERRED IN DELETING THE ADDITION MADE BY THE AO U/S. 14A READ WITH RULE 8D AMOUNTING TO RS.27,41,273/- FOR EARNING EXEMPTED INCOME. (2) THAT IS THE FACTS AND IN LAW OF THE CASE, THE LD. CIT(A) ERRED IN RESTRICTING THE DISALLOWANCE U/S 14A TO 0.5% OF AVERAGE INVESTMENT. (3) THAT IN THE FACTS AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE CALCULATION MADE BY THE AO AS PER RULE 8D. 2. AS POINTED OUT BY THE LD. COUNSEL FOR THE ASSESS EE, AT THE OUTSET, THE TAX EFFECT INVOLVED IN THIS APPEAL OF THE REVENUE I S LESS THAN THE REVISED MONETARY LIMIT RECENTLY FIXED BY THE CBDT VIDE CIRC ULAR NO. 21/2015 I.T.A. NO. 499/KOL./2014 ASSESSMENT YEAR: 2009-2010 PAGE 2 OF 2 DATED 10 TH DECEMBER, 2015 AT RS.10,00,000/- FOR FILING THE AP PEAL BY THE REVENUE BEFORE THE TRIBUNAL AND THIS POSITION CLEAR LY EVIDENT FROM THE GROUNDS RAISED BY THE REVENUE IN THIS APPEAL IS NOT DISPUTED EVEN BY THE LD. D.R. IN CIRCULAR NO. 21/2015 (SUPRA) RECENTLY I SSUED BY THE CBDT, THE MONETARY LIMIT FOR FILING THE APPEALS BY THE REVENU E BEFORE THE TRIBUNAL HAS BEEN INCREASED TO RS.10,00,000/- AND AS CLARIFI ED IN THE SAID CIRCULAR, THE SAID MONETARY LIMIT IS APPLICABLE RETROSPECTIVE LY EVEN TO THE APPEALS PENDING BEFORE THE TRIBUNAL. THE CBDT HAS ALSO INST RUCTED THAT SUCH PENDING APPEALS BELOW THIS SPECIFIED TAX LIMIT OF R S.10,00,000/- MAY BE WITHDRAWN/ NOT PRESSED. KEEPING IN VIEW THE INSTRUC TION GIVEN BY THE CBDT VIDE CIRCULAR NO. 21/2015 DATED 10.12.2015, WH ICH IS SQUARELY APPLICABLE IN THE PRESENT CASE, THE APPEAL FILED BY THE REVENUE IN THIS CASE IS TREATED AS WITHDRAWN/NOT PRESSED AND DISMIS SED ACCORDINGLY. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON NOVEMBER 30, 2016. SD/- SD/- (N.V. VASUDEVAN) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT ME MBER KOLKATA, THE 30 TH DAY OF NOVEMBER, 2016 COPIES TO : (1) DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-11, KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 (2) M/S. P.C. HOLDINGS (P) LIMITED, P-24A, CIT ROAD, ENTALLY, KOLKATA-700 014 (3) COMMISSIONER OF INCOME TAX(APPEALS)-XII, KOLKA TA; (4) COMMISSIONER OF INCOME TAX- , KOLKATA, (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.