Kejriwal Pipes Fittings & Valves, Kolkata V. ITO, Wd.33 (1), Kolkata, Kolkata

ITA 65/KOL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87678 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 1 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 15-01-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K L KANAK
• Assessee Lawyers: N O N E
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

I.T.A. NO . 65 / KOL ./201 4 ASS ESSMENT YEAR: 200 9 - 20 10 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN , JUDICIAL MEMBER I.T.A. NO. 65 / KOL / 20 1 4 ASSESSMENT YEAR : 200 9 - 20 10 KEJRIWAL PIPES FITTINGS & VALVES,.............................. .. .. .APP ELL ANT 33A, CHO WRINGHEE ROAD, 11 TH FLOOR, ROOM NO. 11, KOLKATA - 700 0 71 [ PAN : A A DFK 3348 L ] - VS. - INCOME TAX OFFICER, ...............................................................RESPONDENT WARD - 33(1), KOLKATA, 3 RD FLOOR, 10, MIDDLETON ROW, KOLKATA - 700 071 AP PEARANCES BY: N O N E , FOR THE ASSESSEE S HRI K.L. KANAK , J CIT, SR. D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : FEBRUARY 2 4 , 2 01 5 DATE OF PRONOUNCING THE ORDER : FEBRUARY 2 4 , 201 5 O R D E R PER GEORGE MATHAN : THIS IS AN APPEAL FILED BY THE ASSESSE E AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS) - X I X , KOLKATA IN APPEAL NO. 5 7 / CIT(A) - X I X / WARD - 33(1)/KOL/12 - 13 D ATED 1 3 . 11 .201 3 FOR THE ASSESSMENT YEAR 200 9 - 10 . 2. NONE REPRESENTED ON BEHALF OF THE ASSESSEE AND S HRI K.L. KANA K, JCIT, SR. D.R. REPRESENTED ON BEHALF OF THE REVENUE. 3 . AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD. SR. D.R. THAT THE ONLY ISSUE IN THE ASSESSEE S APPEAL WAS AGAINST THE ACTION OF THE LD. I.T.A. NO . 65 / KOL ./201 4 ASS ESSMENT YEAR: 200 9 - 20 10 PAGE 2 OF 3 CIT(APPEALS) IN CONFIRMING THE ADDITION MADE BY THE ASS ESSING OFFICER BY APPLYING THE PROVISIONS OF SECTION 14A READ WITH RULE 8D. LD. SR. D.R. SUBMITTED THAT THE ISSUE IN DISPUTE RELATED TO THE COMPUTATION OF THE DISALLOWANCE UNDER SECTION 14A READ WITH RULE 8D(2)(II) & (III) OF THE INCOME TAX RULES. IT WAS T HE SUBMISSION THAT THE COMPUTATION AS MADE BY THE ASSESSING OFFICER AND AS CONFIRMED BY THE LD. CIT(APPEALS) IS ON RIGHT FOOTING AND DOES NOT CALL FOR ANY INTERFERENCE. 4. I HAVE CONSIDERED THE SUBMISSIONS. A PERUSAL OF THE ASSESSMENT ORDER AS ALSO THE OR DER OF THE LD. CIT(APPEALS) IN RELATION TO THE COMPUTATION OF THE DISALLOWANCE UNDER SECTION 14A READ WITH RULE 8D SHOWS THAT THE ASSESSING OFFICER AND LD. CIT(APPEALS) HAS GONE ON THE PRESUMPTION THAT THE INVESTMENTS CAN GIVE RISE TO THE EXEMPT INCOME. HO WEVER, THIS IS NOT THE CORRECT INTERPRETATION. THE DISALLOWANCE UNDER SECTION 14A IS IN RELATION TO THE INVESTMENT, INCOME FROM WHICH DOES NOT OR SHALL NOT BE PART OF THE TOTAL INCOME. THIS ISSUE IS SQUARELY COVERED BY THE DECISION OF THE HON BLE DIVISION BENCH OF THIS TRIBUNAL IN THE CASE OF REI AGRO LIMITED VS. - DCIT IN ITA NO. 1331/KOL/2011 AND 1423/KOL/2011 ORDER DATED 19.06.2013. IN THESE CIRCUMSTANCES, RESPECTFULLY FOLLOWING THE PRINCIPLES LAID DOWN BY THE DIVISION BENCH IN THE CASE OF REI AGRO LIMIT ED REFERRED TO SUPRA, THE COMPUTATION OF DISALLOWANCE UNDER SECTION 14A READ WITH RULE 8D IS RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR RE - ADJUDICATION IN LINE WITH THE DECISION OF THE DIVISION BENCH IN THE CASE OF REI AGRO LIMITED REFERRED TO SUPRA . 5 . IN THE RESULT, THE APPEAL FILED BY THE ASSEESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 2 4 TH FEBRUARY , 201 5 . SD/ - GEORGE MATHAN ( JUDICIAL MEMBER) KOLKATA, THE 2 4 TH D AY OF FEBRUARY , 201 5 I.T.A. NO . 65 / KOL ./201 4 ASS ESSMENT YEAR: 200 9 - 20 10 PAGE 3 OF 3 COPIES TO : (1) KEJRIWAL PIPES FITTINGS & VALVES, 33A, CHOWRINGHEE ROAD, 11 TH FLOOR, ROOM NO. 11, KOLKATA - 700 071 (2) INCOME TAX OFFICER, WARD - 33(1), KOLKATA, 3 RD FLOOR, 10, MIDDLETON ROW, KOLKATA - 7 00 071 (3) COMMISSIONER OF INCOME - TAX (APPEALS) (4) COMMISSIONER OF INCOME TAX ( 5 ) THE DEPARTMENTAL REPRESENTATIVE ( 6 ) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES, KOLKATA LAHA/SR. P.S .