DCIT, CIR-6(2), Kolkata, Kolkata V. M/s. Nagreeka Exports Limited, Kolkata

ITA 804/KOL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6094 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 21-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A BANDOPADHYAY
• Keywords: Earning of tax free income
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA D BENCH, KOLKATA [BEFORE SRI S.S. GODARA, JUDICIAL MEMBER& SRI M. BALAGANESH, ACCOUNTANT MEMBER] I.T.A. NO. 804/KOL/2017 ASSESSMENT YEAR: 2009-10 DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-6(2), KOLKATA.........APPELLANT M/S. NAGREEKA EXPORTS LIMITED............................................RESPONDENT 18, R.N. MUKHERJEE ROAD KOLKATA 700 001 [PAN AAACN 9999 A] APPEARANCES BY: NONE ,APPEARED ON BEHALF OF THE ASSESSEE. SHRI A. . BANDOPADHYAY, ADDL. CIT, SR.DR APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : JUNE 12 TH ,2018 DATE OF PRONOUNCING THE ORDER : JULY 11 TH ,2018 ORDER PER S.S. GODARA, JM :- THIS REVENUES APPEAL FOR THE ASSESSMENT YEAR 2009-10 CHALLENGES THE CORRECTNESS OF THE COMMISSIONER OF INCOME TAX (APPEALS) 17, KOLKATAS ORDER (HEREINAFTER THE CIT(A)) ORDER DATED 12/12/2016 PASSED IN CASE NO. 199/CIT(A)- 17/KOL/14-15 REVERSING THE ASSESSING OFFICERS ACTION INVOKING SECTION 14A OF THE INCOME TAX ACT, 1961 (IN SHORT ACT) R.W.R 8D(2)(II) OF THE INCOME TAX RULES, 1962 (IN SHORT RULES) PROPORTIONATE EXPENDITURE DISALLOWANCE OF RS.34,23,594/- INVOLVING PROCEEDINGS U/S 143(3) OF THE ACT. 2. LEARNED DEPARTMENTAL REPRESENTATIVE CONTENDS DURING THE COURSE OF HEARING THAT THE CIT(A) HAS ERRED IN LAW AS WELL AS ON FACTS IN DELETING THE IMPUGNED DISALLOWANCE OF RS.34,23,594/- AS MADE IN THE COURSE OF ASSESSMENT REGARDING ASSESSEES EXEMPT INCOME FROM DIVIDENDS AMOUNTING TO RS.8,52,575/-. WE FIND NO MERIT IN REVENUES INSTANT SOLE GRIEVANCE. IT EMERGES THAT THE ASSESSEE HAD MADE EXEMPT INVESTMENTS IN QUESTION OF RS.14,68,62,075/- AS AGAINST ITS SHARE CAPITAL OF RS.6,25,50,000/- ON 31/03/2008 & 31/03/2009 AS WELL AS RESERVES OF SURPLUS OF RS.782,899,111/- AND RS.765,272,054/-; RESPECTIVELY. THESE INTEREST FREE FUNDS EXCEED ASSESSEES ABOVE STATED EXEMPT INVESTMENTS. WE THEREFORE QUOTE HONBLE JURISDICTIONAL HIGH COURT DECISION IN THE CASE OF PRINCIPAL COMMISSIONER OF INCOME TAX VS RASOI LIMITED BEING GA NO. 633/2016, ITAT NO. 109/2016, DT. 2 I.T.A. NO. 804/KOL/2017 ASSESSMENT YEAR: 2009-10 M/S. NAGREEKA EXPORTS LIMITED 15/02/2017 HOLDING THAT THE IMPUGNED DISALLOWANCE PROVISION DOES NOT APPLY IN CASE THE CONCERNED TAX PAYERS INTEREST FREE FUNDS ARE MORE THAN THE EXEMPT INVESTMENT IN QUESTION. THE REVENUES SOLE SUBSTANTIVE GRIEVANCE IS DECLINED ACCORDINGLY. 3. THIS REVENUES APPEAL IS DISMISSED. KOLKATA, THE 11 TH DAY OF JULY, 2018. SD/- SD/- [M. BALAGANESH] [ S.S. GODARA ] ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATED : 11.07.2018 {SC SPS} COPY OF THE ORDER FORWARDED TO: 1. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-6(2), KOLKATA 2. M/S. NAGREEKA EXPORTS LIMITED 18, R.N. MUKHERJEE ROAD KOLKATA 700 001 3. CIT(A)- 4. CIT- , 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY HEAD OF OFFICE/ D.D.O. ITAT, KOLKATA BENCHES