Siddheshwari Vyapaar Pvt. Ltd., Kolkata V. I.T.O., Ward-5(4), Kolkata

ITA 803/KOL/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4807 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 19-09-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 16-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: JAYDEEP CHAKRABORTY
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A; 201

Judgement Text

ITA NO. 803/KOL/2019 AS SESSMENT YEAR: 2013-2014 SID DHESHWARI VYAPPAR PVT. LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA B(SMC) BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT I.T.A. NO. 803/KOL/2019 ASSESSMENT YEAR: 2013-2014 SIDDHESHWARI VYAPPAR PVT. LIMITED,................. .....................APPELLANT 15A, HARE STREET, KOLKATA-700 001 [PAN: AANCS2337J] -VS.- INCOME TAX OFFICER,............................,... ..................................RESPONDENT WARD-5(4), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 APPEARANCES BY: SHRI SOUMITRA CHOUDHURY, ADVOCATE & SHRI JAYDEEP CH AKRABORTY, ADVOCATE, FOR THE APPELLANT SHRI JAYANTA KHANRA, JCIT, SR. D.R , FOR THE RESPONDEN T DATE OF CONCLUDING THE HEARING : SEPTEMBER 19, 201 9 DATE OF PRONOUNCING THE ORDER : NOVEMBER 08, 2019 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-2, KOLKATA DAT ED 13.07.2018 AND THE SOLITARY ISSUE INVOLVED THEREIN RELATES TO THE DISALLOWANCE OF RS.16,91,957/- MADE BY THE ASSESSING OFFICER AND CO NFIRMED BY THE LD. CIT(APPEALS) UNDER SECTION 14A OF THE ACT READ WITH RULE 8D OF THE INCOME TAX RULES, 1962. 2. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE LIMITED CONTENTION RAISED BY THE LD. COUNSEL FOR THE ASSESSEE IS THAT THE ACTUAL EXEMPT INCOME IN THE FORM OF DIVIDEND RECEIVED BY THE ASSESSEE DURING TH E YEAR UNDER CONSIDERATION BEING ONLY RS.1,700/-, THE DISALLOWAN CE UNDER SECTION 14A ITA NO. 803/KOL/2019 AS SESSMENT YEAR: 2013-2014 SID DHESHWARI VYAPPAR PVT. LIMITED 2 READ WITH RULE 8D CANNOT BE MORE THAN THE ACTUAL EX EMPT INCOME RECEIVED BY THE ASSESSEE AND THE SAME, THEREFORE, S HOULD BE RESTRICTED TO RS.1,700/-. SINCE THIS CONTENTION RAISED BY THE LD. COUNSEL FOR THE ASSESSEE IS DULY SUPPORTED, INTER ALIA, BY THE DECI SION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF JOINT INVESTMENTS (P) LIM ITED VS.- CIT (59 TAXMANN.COM 295), WE DIRECT THE ASSESSING OFFICER T O RESTRICT THE DISALLOWANCE UNDER SECTION 14A READ WITH RULE 8D TO RS.1,700/- AND ALLOW THIS APPEAL OF THE ASSESSEE PARTLY. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON NOVEMBER 08, 2019. SD/- (P.M. JAGTAP) VICE-PRESIDENT KOLKATA, THE 8 TH DAY OF NOVEMBER, 2019 COPIES TO : (1) SIDDHESHWARI VYAPPAR PVT. LIMITED, 15A, HARE STREET, KOLKATA-700 001 (2) INCOME TAX OFFICER, WARD-5(4), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 (3) COMMISSIONER OF INCOME TAX (APPEALS)-2, KOLKA TA, (4) COMMISSIONER OF INCOME TAX, KOLKATA- , KOLKATA; (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.