Sankar Sarkar, Durgapur V. ACIT, CIR-2, Durgapur, Durgapur

ITA 684/KOL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 0649 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 19-05-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DAVID Z CHAWNGTHU CIT SR D

Judgement Text

1 ITA NO.684/KOL/2015 SANKAR SARKAR, AY 2010-11 , C , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA () BEFORE .., /AND . , ) [BEFORE SHRI A. T. VARKEY, JM & SHRI M.BALAGANESH, AM] I.T.A. NO. 684/KOL/2015 ASSESSMENT YEAR: 2010-11 SANKAR SARKAR (PAN:AJVPS5045D) VS. ASSISTANT COMMIS SIONER OF INCOME-TAX, CIRCLE-2, DURGAPUR APPELLANT RESPONDENT DATE OF HEARING 26.10.2017 DATE OF PRONOUNCEMENT 15.12.2017 FOR THE APPELLANT MS. SWATI BAID, AR FOR THE RESPONDENT SHRI DAVID Z. CHAWNGTHU, ADDL. C IT,SR. DR ORDER PER SHRI A.T.VARKEY, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A)-DURGAPUR, DATED 13.03.2015 FOR AY 2010-11. 2. THE MAIN GRIEVANCE OF THE ASSESSEE IS AGAINST T HE ACTION OF AO IN MAKING AN ADDITION OF RS.37,86,744/- AND NOT GIVING EXEMPTION U/S. 10( 34) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) 3. BRIEF FACTS OF THE CASE ARE THAT THE AO NOTED T HAT THE ASSESSEE HAS RECEIVED DIVIDEND INCOME TO THE TUNE OF RS.37,86,744/- FROM M/S. SUBI R ENGINEERING PVT. LTD. (HEREINAFTER M/S. SEPL) AND CLAIMED EXEMPTION U/S. 10(34) OF THE ACT IN RESPECT OF THE DIVIDEND. THE AO NOTED THAT THE ASSESSEE IS A DIRECTOR OF M/S. SE PL AND THE SAID COMPANY HAS NOT DEPOSITED TAX ON THE DISTRIBUTED PROFIT WITHIN THE STIPULATED TIME I.E. WITHIN 14 DAYS FROM THE DATE OF DECLARATION OR DISTRIBUTION OR PAYMENT OF D IVIDEND AS PER SEC. 115-O OF THE ACT. THEREFORE, HE DISALLOWED THE SAME AND MADE AN ADDIT ION OF THE SAID AMOUNT. AGGRIEVED, THE 2 ITA NO.684/KOL/2015 SANKAR SARKAR, AY 2010-11 ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A), WHO WAS PLEASED TO CONFIRM THE SAME. AGGRIEVED, ASSESSEE IS BEFORE US. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. WE NOTE THAT THE ASSESSEE IS A DIRECTOR OF M /S. SEPL AND WAS IN RECEIPT OF THE DIVIDEND INCOME TO THE TUNE OF RS.37,86,744/- AND C LAIMED EXEMPTION U/S. 10(34) OF THE ACT. THE AO NOTED THAT M/S. SEPL HAS NOT DEPOSITED THE TAX ON THE DISTRIBUTED PROFIT WITHIN THE STIPULATED TIME I.E. WITHIN 14 DAYS FROM THE DA TE OF DECLARATION OF DIVIDEND OR DISTRIBUTION OR PAYMENT OF DIVIDEND, WHICHEVER IS E ARLIER. ACCORDING TO THE ASSESSEE, THE FACT AS OF NOW IS THAT M/S. SEPL HAVE ALREADY REMIT TED THE AMOUNT ALONG WITH INTEREST AND DREW OUR ATTENTION TO PAGE 3 OF THE PAPER BOOK, WHE REIN WE NOTE THAT AN AMOUNT OF RS.8,34,978/- HAS BEEN REMITTED BY CHALLAN DRAWN ON STATE BANK OF INDIA UNDER THE HEAD TAX ON DISTRIBUTED PROFIT FROM M/S. SEPL FOR AY 20 10-11 . IF THE TAX HAS BEEN DEPOSITED ON THE DIVIDEND DISTRIBUTED TO THE ASSESSEE ALONG WITH INTEREST, THEN THE DIVIDEND DISTRIBUTED TO THE ASSESSEE SHOULD NOT BE DISALLOWED AND THE SAID AMOUNT SHOULD BE GRANTED EXEMPTION U/S. 10(34) OF THE ACT. IN ORDER TO VERIFY THIS FACT, WE DEEM IT FIT AND PROPER TO SET ASIDE THE ORDER OF LD. CIT(A) AND REMAND THE ISSUE BACK TO AO, TO V ERIFY AS TO WHETHER M/S. SEPL HAS DEPOSITED TAX ON DIVIDEND ALONG WITH INTEREST. IF THE TAX ALONG WITH INTEREST ON THE DIVIDEND DISTRIBUTED TO ASSESSEE HAS BEEN DEPOSITED AS PER L AW BY THE ASSESSEE AS DISCERNED FROM PAGE 3 OF CHALLAN (SUPRA), THEN THE AMOUNT OF DIVIDEND E ARNED BY THE ASSESSEE SHOULD BE EXEMPT AS PER SEC. 10(34) OF THE ACT. WITH THE AFORESAID D IRECTION, WE SET ASIDE THE ORDER OF LD. CIT(A) AND RESTORE THE MATTER TO THE FILE OF AO TO ADJUDICATE THE ISSUE. THUS, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED IN THE OPEN COURT ON 15TH DECEM BER, 2017 SD/- SD/- (M. BALAGANESH) (ABY. T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 15TH DECEMBER, 2017 JD.(SR.P.S.) 3 ITA NO.684/KOL/2015 SANKAR SARKAR, AY 2010-11 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT SHRI SANKAR SARKAR, 2/9, SUNITY CHAT TERJEE PATH, CITY CENTRE, DURGAPUR-713203. 2 RESPONDENT A.C.I.T., CIRCLE-2, DURGAPUR. 3. THE CIT(A) , DURGAPUR. 4. 5. CIT , DURGAPUR DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, SR. PVT. SECRETARY