ITO, Ward - 11(1), Kolkata , Kolkata V. M/s. Visa Infrastructure Ltd., , Kolkata

ITA 749/KOL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1409 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 20-04-2018
• Court: TRIBUNAL

Judgement Text

1 ITA NO. 749/KOL/2018 M/S. VISA INFRAS TRUCTURE LTD., AY- 2014-15 , D , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: KOL KATA ( ) . . , . . ! , ' #$ ) [BEFORE SHRI P.M. JAGTAP, VICE PRESIDENT & SHRI A. T. VARKEY, JM] I.T.A. NO. 749/KOL/2018 ASSESSMENT YEAR: 2014-15 INCOME-TAX OFFICER, WD-11(3), KOLKATA VS. M/S. VISA INFRASTRUCTURE LTD. (PAN: AACCV6382K) APPELLANT RESPONDENT DATE OF HEARING 09.01.2019 DATE OF PRONOUNCEMENT 20.03.2019 FOR THE APPELLANT SHRI RADHEY SHYAM, CIT, DR FOR THE RESPONDENT SHRI AMIT RATNI, AR & SHRI N. KU MAR, AR ORDER PER SHRI A.T.VARKEY, JM THIS IS AN APPEAL PREFERRED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A)-4, KOLKATA DATED 15.01.2018 FOR AY 2014-15. 2. THE SOLE GROUND OF APPEAL OF REVENUE IS AGAINST THE ACTION OF THE LD. CIT(A) IN DELETING THE ADDITION MADE BY THE AO APPLYING SEC. 14A OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) READ WITH RU LE 8D OF THE INCOME-TAX RULES, 1962 (HEREINAFTER REFERRED TO AS THE RULES). 3. AT THE OUTSET ITSELF, THE LD. AR DREW OUR ATTENT ION TO THE FACT THAT THE ASSESSEE COMPANY DID NOT EARN ANY EXEMPT INCOME WHICH FACT H AS BEEN ACKNOWLEDGED BY THE AO IN PARA 2 OF THE ASSESSMENT ORDER WHEREIN THE AO IN HI S OWN WORDS HAS STATED THAT THERE WAS NO EXEMPT INCOME EARNED DURING THE FINANCIAL YEAR RELE VANT TO AY 2014-15. ACCORDING TO THE LD. COUNSEL, THE FACT THAT THE ASSESSEE HAS NOT E ARNED ANY EXEMPT INCOME HAS BEEN TAKEN NOTE BY THE LD. CIT(A) AT PARA 3 WHEREIN THE LD. C IT(A) IN HIS OWN WORDS HAS HELD AS UNDER: ALL THE GROUNDS ARE RELATED TO THE ABOVE DISALLOW ANCE. DURING THE COURSE OF APPELLATE PROCEEDINGS, THE LD. AR HAS STATED THAT THE ASSESSE E HAS NOT EARNED ANY EXEMPT INCOME, THEREFORE, NO DISALLOWANCE U/S. 14A COULD HAVE BEEN MADE. I AGREE WITH THE CONTENTION OF THE LD. AR. FOLLOWING THE DECISION OF THE HONBLE KOLK ATA TRIBUNAL IN THE CASE OF CIT VS. REI 2 ITA NO. 749/KOL/2018 M/S. VISA INFRAS TRUCTURE LTD., AY- 2014-15 AGRO LTD. WHICH HAS BEEN AFFIRMED BY CALCUTTA HIGH COURT, NO DISALLOWANCE COULD BE MADE UNDER RULE 8D WHERE NO EXEMPT INCOME HAS BEEN EARNE D. 4. WE NOTE THAT THE AFORESAID FINDING OF F ACT OF THE LD. CIT(A) THAT THE ASSESSEE WAS NOT IN RECEIPT OF ANY EXEMPT INCOME HAS NOT BEEN NE ITHER CHALLENGED BY THE DEPARTMENT NOR THE LD. DR WAS ABLE TO POINT OUT FROM THE RECORDS T HAT THE ASSESSEE HAD IN FACT EARNED ANY EXEMPT INCOME IN THE YEAR UNDER CONSIDERATION. SIN CE THE ASSESSEE HAS NOT EARNED ANY EXEMPT INCOME APPLYING THE LAW AS LAID BY THE HONB LE DELHI HIGH COURT IN CIT VS. CHEMINVEST LTD. (2015) 378 ITR 33 (DEL.) WHEREIN IT WAS HELD THAT WHEN THERE BEING NO EXEMPT INCOME EARNED BY THE ASSESSEE, NO DISALLOWAN CE U/S.14A READ WITH RULE 8D CAN BE APPLIED MECHANICALLY TO DISALLOW EXPENDITURE INCURR ED TO EARN EXEMPT INCOME. THE HONBLE JURISDICTIONAL HIGH COURT IN CIT VS. M/S. ASHIKA GL OBAL SECURITIES LTD. IN ITAT 100 OF 2014, GA 2122 OF 2014 DATED 11.06.2018 HAS APPROVED THE AFORESAID PROPOSITION OF LAW. IN SUCH A SCENARIO, WE ARE NOT INCLINED TO INTERFERE W ITH THE ACTION OF THE LD. CIT(A) AND THE SAME IS HEREBY CONFIRMED. THEREFORE, THE APPEAL OF THE REVENUE IS DISMISSED. 5. IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 20TH MARC H, 2019 SD/- SD/- (P. M. JAGTAP) (ABY. T. VARKEY) VICE PRESIDENT JUDICIAL MEMBER DATED : 20TH MARCH, 2019 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. APPELLANT ITO, WARD-11(3), KOLKATA. 2 RESPONDENT M/S. VISA INFRASTRUCTURE LTD., 8/10, VISA HOUSE, ALIPORE ROAD, KOLKATA-700 027. 3. 4. CIT(A)-4, KOLKATA (SENT THROUGH E-MAIL) CIT- , KOLKATA. 5. DR, ITAT, KOLKATA. (SENT THROUGH E-MAIL) / TRUE COPY, BY ORDER, ASSISTANT REGISTRAR