DCIT, Circle-8(1), Kolkata, Kolkata V. M/s Magma Fincrop Ltd., Kolkata

ITA 946/KOL/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0150 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2018
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 04-05-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ROBIN CHOWDHURY
• Assessee Lawyers: A CHATTERJEE
• Keywords: Earning of tax free income; Fair market value
• Section: 143(3); 14A; 115JB; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : KOLKATA [BEFORE HONBLE SHRI S.S.GODARA, JM & HONBLE SHRI M.BALAGANESH, AM] I.T.A NO. 946/KOL/2017 ASSESSMENT YEAR : 2013-1 4 DCIT,CIRCLE-8(1), KOLKATA -VS- M/S MAGMA FINCOR P LTD. [PAN: AABCM 9445 K] (APPELLANT) (RESP ONDENT) FOR THE APPELLANT : SHRI ROBIN CHOWDHU RY, ADDL. CIT SR. DR FOR THE RESPONDENT : SMT. A. CHATTERJEE, AR DATE OF HEARING : 04.12.2018 DATE OF PRONOUNCEMENT : 07.12.2018 ORDER PER M.BALAGANESH, AM 1. THIS APPEAL BY THE REVENUE ARISES OUT OF THE O RDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-3, KOLKATA [IN SHORT THE LD CIT (A)] IN APPEAL NO.2210/CIT(A)- 3/C-8(1)/2015-16 DATED 20.02.2017 AGAINST THE ORDE R PASSED BY DCIT, CIRCLE-8(1), KOLKATA [ IN SHORT THE LD AO] UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 29.03.2016 FOR THE ASSESSME NT YEAR 2013-14. 2. THE ADJOURNMENT PETITION PREFERRED BY THE LD AR WAS REJECTED AS THE ISSUES INVOLVED IN THIS APPEAL ARE ALREADY COVERED BY VARIOUS DECIS IONS OF SPECIAL BENCHES OF TRIBUNAL 2 ITA NO.946/KOL/2017 M/S MAGMA FINCORP LTD. A.YR. 2013-14 2 AND HONBLE SUPREME COURT. ACCORDINGLY, WE PROCEED TO HEAR THIS APPEAL ON HEARING THE LD DR AND BASED ON MATERIALS AVAILABLE ON RECOR D. 3. THE FIRST ISSUE TO BE DECIDED IN THIS APPEAL IS AS TO WHETHER THE LD CITA WAS JUSTIFIED IN GRANTING RELIEF TO THE ASSESSEE IN THE SUM OF RS 33,18,575/- U/S 14A OF THE ACT READ WITH RULE 8D OF THE RULES IN THE COMPUTATION OF BOO K PROFITS U/S 115JB OF THE ACT. 3.1. THE LD AO OBSERVED THAT THE ASSESSEE HAD NON-C URRENT NON-TAXABLE INVESTMENTS HAVING OPENING VALUE OF RS. 3332.05LAKHS AND CLOSIN G VALUE OF RS. 11934.05 LAKHS. THE AVERAGE VALUE OF INVESTMENT DURING THE YEAR UNDER C ONSIDERATION WAS RS. 7633.15/ LAKHS. THE ASSESSEE WAS REQUESTED TO FURNISH DETAIL S OF EXPENSES INCURRED ON SUCH INVESTMENTS, INCOME FROM WHICH IS NOT INCLUDIBLE I N THE TOTAL INCOME OF THE ASSESSEE. THE ASSESSEE STATED THAT THERE WAS NO AMOUNT WAS IN CURRED FOR EARNING EXEMPT INCOME AND AN AMOUNT OF RS. 4.98 LAKHS WAS OFFERED FOR DIS ALLOWANCE / S 14A OF THE ACT. THE SUBMISSION OF THE ASSESSEE IS CONSIDERED BUT FOUND NOT TENABLE. IT HAS BEEN CLARIFIED BY HON'BLE CBDT VIDE CIRCULAR NO. 05/2014 DATED 11.02. 2014 THAT THE LEGISLATIVE INTENT IS TO ALLOW ONLY THAT EXPENDITURE WHICH IS RELATABLE T O EARNING OF INCOME AND IT THEREFORE FOLLOWS THAT THE EXPENSES WHICH ARE RELATABLE TO EA RNING OF EXEMPT INCOME HAVE TO BE CONSIDERED FOR DISALLOWANCE, IRRESPECTIVE OF THE FA CT WHETHER ANY SUCH INCOME HAS BEEN EARNED DURING THE FINANCIAL-YEAR OR NOT. AS THE ASS ESSEE DID NOT MAINTAIN ANY SEPARATE BOOKS OF ACCOUNTS FOR ACCOUNTING FOR EXPENSES INCUR RED IN RELATION TO INCOME NOT INCLUDIBLE IN ITS TOTAL INCOME, THE AMOUNT OF EXPEN SES ACTUALLY INCURRED CANNOT BE ASCERTAINED FROM THE ASSESSEE'S BOOKS OF ACCOUNTS S ATISFACTORILY. ACCORDINGLY, THE PROVISIONS OF SECTION 14A R. W. RULE 8DD OF THE ACT ARE ATTRACTED IN THE CASE OF THE ASSESSEE. THEREFORE, THE DISALLOWANCE U/ S 14A OF T HE ACT COMES TO 0.5% OF RS. 7633.15 LAKHS I. E. RS. 38,16,575/ -. ACCORDINGLY, AN AMOUN T OF RS. 33,18,575/-(38,16,575- 4,98,000) IS DISALLOWED AND ADDED BACK TO THE TOTAL INCOME OF THE ASSESEEE. 3 ITA NO.946/KOL/2017 M/S MAGMA FINCORP LTD. A.YR. 2013-14 3 3.2. THE LD CITA DELETED THE DISALLOWANCE U/S 14A O F THE ACT READ WITH RULE 8D OF THE INCOME TAX RULES UNDER NORMAL PROVISIONS OF THE ACT AS WELL AS IN THE COMPUTATION OF BOOK PROFITS U/S 115JB OF THE ACT. AGGRIEVED, THE REVENUE HAD PREFERRED AN APPEAL BEFORE US ONLY ON THE ASPECT OF DISALLOWANCE U/S 14 A OF THE ACT READ WITH RULE 8D OF THE RULES IN THE COMPUTATION OF BOOK PROFITS U/S 11 5JB OF THE ACT ALONE. 3.3. WE HAVE HEARD THE LD DR. WE NOTE THAT THE SPE CIAL BENCH OF ITAT DELHI BENCH IN ACIT VS VIREET INVESTMENT (P) LTD (2017) 82 TAXMANN .COM 415 (DELHI.TRIB.)(SB) HAS HELD AS UNDER:- 6.22. IN VIEW OF ABOVE DISCUSSION, WE ANSWER THE Q UESTION REFERRED TO US IN FAVOUR OF ASSESSEE BY HOLDING THAT THE COMPUTATION UNDER CLAUSE (F) EXPLANATION 1 TO SECTION 115JB(2) IS TO BE MADE WITHOUT RESORTI NG TO THE COMPUTATION AS CONTEMPLATED U/S 14A READ WITH RULE 8D OF THE INCOM E-TAX RULES, 1962. RESPECTFULLY FOLLOWING THE JUDICIAL PRECEDENT RELIE D UPON HEREINABOVE, WE RESTORE THE MATTER TO LD AO TO CALCULATE THE BOOK PROFIT U/S 11 5JB OF THE ACT AFTER WORKING OUT THE DISALLOWANCE , IF ANY, IN TERMS OF CLAUSE (F) TO EX PLANATION 1 OF SECTION 115JB OF THE ACT INDEPENDENTLY AFTER CONSIDERING THE EXPENSES DEBITE D IN THE PROFIT AND LOSS ACCOUNT AS MANDATED UNDER THE PROVISIONS OF LAW. WE WOULD LIKE TO STATE THAT THE DISALLOWANCES MADE UNDER THE PROVISIONS OF SEC. 14A R.W.S 8D OF T HE IT RULES, CANNOT BE APPLIED TO THE PROVISIONS OF SEC. 115JB OF THE ACT. ACCORDINGL Y, GROUND NO. 1 OF REVENUES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. 4. THE NEXT ISSUE TO BE DECIDED IN THIS APPEAL IS A S TO WHETHER THE LD CITA WAS JUSTIFIED IN ALLOWING THE ESOP EXPENSES OF RS 23,98,000/- IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 4.1 . THE LD AO OBSERVED THAT ASSESSEE IN ITS INCOM E TAX COMPUTATION CLAIMED RS.23. 98 LAKHS ON ACCOUNT OF ESOP EXTRA ALLOWANCE. ESOP I S A PLAN WHEREIN AN OPTION IS PROVIDED BY THE EMPLOYER TO EMPLOYEE TO OPT FOR ISS UE OF SHARES IN THE COMPANY AT THE 4 ITA NO.946/KOL/2017 M/S MAGMA FINCORP LTD. A.YR. 2013-14 4 END OF VESTING PERIOD ON SATISFYING SPECIFIC CONDIT IONS SET IN BY EMPLOYER AT AN AGREED PRE-DETERMINED DISCOUNTED PRICE AGAINST A COMMITMEN T FROM THE EMPLOYEE OF PROVISION OF UNINTERRUPTED SERVICES TO THE COMPANY. THE ESOP EXPENSE OF RS. 23.98 LAKHS HAVE NOT BEEN REFLECTED IN THE BOOKS AND IS NOT AN ALLOW ABLE EXPENSE UNDER THE PROVISIONS OF THE ACT. ACCORDINGLY, AN AMOUNT OF RS. 23.98 LAKHS IS DISALLOWED AND ADDED BACK TO THE TOTAL INCOME OF THE ASSESSEE. 4.2. THE ASSESSEE ARGUED THAT THE EXPENDITURE INCUR RED TOWARDS ESOP IS AN ALLOWABLE EXPENDITURE. WITHOUT PREJUDICE TO THE SAME, THE AS SESSEE SUBMITTED THAT ESOP IS A SCHEME UNDER WHICH THE DIRECTORS, OFFICERS AND EMPL OYEES RECEIVE A RIGHT TO PURCHASE SECURITIES OR SHARES OF THE COMPANY AT A PRE-DETERM INED PRICE, LOWER THAN THE MARKET VALUE. THE ESOP DISCOUNT IS A TAXABLE PERQUISITE T O THE EMPLOYEE AT THE TIME OF EXERCISE OF OPTION, AND ITS VALUATION IS TO BE DONE BY CONSIDERING THE FAIR MARKET VALUE OF THE SHARES ON THE DATE ON WHICH THE OPTION IS EXERC ISED. SINCE THE REMUNERATION TO THE EMPLOYEES UNDER THE ESOP IS THE AMOUNT OF DISCOUNT WITH RESPECT TO THE MARKET PRICE OF SHARES AT THE TIME OF EXERCISE OF OPTION, THE EMPLO YEE COST IN THE HANDS OF THE COMPANY SHOULD ALSO BE RESPECT TO THE SAME BASE. WITH REGA RD TO THE LD AOS ALLEGATION THAT THE ASSESSEES CLAIM ON ACCOUNT OF ESOP DISCOUNT HAD NO T BEEN REFLECTED IN THE BOOKS OF ACCOUNT, THE ASSESSEE SUBMITTED THAT DURING THE FIN ANCIAL YEAR 2012-13, THE ASSESSEE HAD DEBITED RS 13.05 LACS AS EMPLOYEE COMPENSATION EXPE NSES ON ACCOUNT OF ESOP UNDER NOTE 23 OF EMPLOYEE BENEFIT EXPENSES IN ITS AUDITED FINANCIAL STATEMENTS AND HAD CLAIMED THE SAME AS AN ALLOWABLE EXPENDITURE. THE COMPANY HAS AMORTISED THE ESOP EXPENDITURE OF RS 13.05 LACS DURING THIS YEAR, IN T HE BOOKS ON THE BASIS THAT THE ENTIRE AMOUNT HAS BEEN AMORTISED OVER THE VESTING PERIOD. HOWEVER, AN AMOUNT OF RS 23,98,000/- CLAIMED BY THE ASSESSEE ON ACCOUNT OF ESOP DISCOUNT IS AN ADDITIONAL DISCOUNT PROVIDED TO THE EMPLOYEES BY THE ASSESSEE WHICH IS THE AMOUNT OF DISCOUNT CALCULATED WITH REFERENCE TO THE MARKET PRICE AT TH E TIME OF GRANT OF OPTION AND THE MARKET PRICE AT THE TIME OF EXERCISE OF OPTION. SIN CE THE ACTUAL AMOUNT OF EMPLOYEE COST 5 ITA NO.946/KOL/2017 M/S MAGMA FINCORP LTD. A.YR. 2013-14 5 CAN BE PRECISELY DETERMINED ONLY AT THE TIME OF EXE RCISE OF OPTION BY THE EMPLOYEES, THE PROVISIONAL AMOUNT OF DISCOUNT AVAILED AS DEDUCTION DURING THE VESTING PERIOD NEEDS TO BE ADJUSTED IN THE LIGHT OF THE ACTUAL DISCOUNT ON THE BASIS OF THE MARKET PRICE OF THE SHARES AT THE TIME OF EXERCISE OF OPTIONS. THUS IT WAS PLEADED THAT THE SAID EXPENDITURE INCURRED BY THE ASSESSEE IS AN EXTRA ALLOWANCE BY T HE ASSESSEE TO ITS EMPLOYEES, WHICH IS THE DIFFERENCE IN THE AMOUNT OF DISCOUNT CALCULATED WITH REFERENCE TO THE MARKET PRICE AT THE TIME OF GRANT OF OPTION AND THE MARKET PRICE AT THE TIME OF EXERCISE OF OPTION AND HENCE CANNOT BE REFLECTED IN THE BOOKS OF ACCOUNT. FURTHER IT IS TO BE NOTED THAT THE ADDITIONAL ALLOWANCE OF RS 23,98,000/- IS A TAXABLE PERQUISITE IN THE HANDS OF THE EMPLOYEES, AND TAX WAS ACCORDINGLY DEDUCTED ON IT A ND HENCE HAS BEEN DULY OFFERED TO TAX BY THE EMPLOYEES. 4.3. THE LD CITA PLACED RELIANCE ON THE SPECIAL BEN CH DECISION OF BANGALORE TRIBUNAL IN THE CASE OF BIOCON LTD VS DCIT REPORTED IN 35 TA XMANN.COM 335 WHEREIN IT HAD CONSIDERED THE ALLOWABILITY OF ESOP EXPENSES IN DET AIL AND HAD HELD THE DISCOUNT ON ESOP AS A PART OF EMPLOYEES COST AND HENCE ALLOWAB LE IN THE HANDS OF THE EMPLOYER. ACCORDINGLY, THE LD CITA DELETED THE DISALLOWANCE OF RS 23,98,000/- . AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US. 4.4. WE HAVE HEARD THE LD DR. WE FIND THAT THE IS SUE UNDER DISPUTE IS SQUARELY COVERED BY THE SPECIAL BENCH DECISION OF BANGALORE TRIBUNAL SUPRA AND RESPECTFULLY FOLLOWING THE SAME, WE FIND NO INFIRMITY IN THE ORDER OF THE LD CITA GRANTING RELIEF TO THE ASSESSEE. ACCORDINGLY, THE GROUND NO. 2 RAISED BY THE REVENUE IS DISMISSED. 5. THE LAST ISSUE TO BE DECIDED IN THIS APPEAL IS A S TO WHETHER THE LD CITA WAS JUSTIFIED IN DELETING THE ADDITION MADE IN THE SUM OF RS 2,83 ,30,000/- TOWARDS EXCHANGE LOSS IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 6 ITA NO.946/KOL/2017 M/S MAGMA FINCORP LTD. A.YR. 2013-14 6 5.1. THE BRIEF FACTS OF THIS ISSUE ARE THAT DURING THE RELEVANT A.Y. THE ASSESSEE HAS BOOKED MARK TO MARKET PROFIT OF RS. 283.30 LAKHS SH OWN AS NEGATIVE FIGURE UNDER NOTE 24 FINANCE COST ARISING ON ACCOUNT OF DERIVATIVE TRANSACTIONS. IT IS NOTICED FROM THE COMPUTATION OF INCOME THAT THE SAME AMOUNT HAS BEEN REDUCED FROM THE TAXABLE PROFIT IN THE COMPUTATION OF INCOME. THE ASSESSEE HAS REFE RRED TO THE BOARDS INSTRUCTION NO. 3/10 DATED 23.03.2010. IT IS NOTICED THAT THIS INST RUCTION OF THE HONBLE BOARD IS APPLICABLE IN THE CASE OF MTM LOSS ON DERIVATIVES. HEREIN THE ASSESSEE HAS NOT FURNISHED ANY DETAIL OF THE UNDERLYING ASSETS, MEANING THEREB Y WHETHER THE TRANSACTION IS RELATED TO THE BUSINESS OR NOT. IN THE ABSENCE OF THE DETAI LS OF TRANSACTIONS IT CANNOT BE DENIED THAT THE TRANSACTION CAN BE RELATED TO THE BUSINESS OF THE ASEEESEE. AS-11 DEALS WITH GIVING OF ACCOUNTING TREATMENT FOR THE EFFECTS OF C HANGES IN FOREIGN EXCHANGE RATES. IN CASE OF THE REVENUE ITEMS FALLING UNDER SECTION 37( 1), PARA 9 OF AS-11, WHICH DEALS WITH RECOGNITION OF EXCHANGE DIFFERENCES, NEEDS TO BE CO NSIDERED. UNDER THIS PARA, EXCHANGE DIFFERENCES ARISING ON FOREIGN CURRENCY TRANSACTION S HAVE TO BE RECOGNIZED AS INCOME OR AS EXPENSE IN THE PERIOD IN WHICH THEY ARISE. THE I MPORTANT POINT TO BE NOTED IS THAT AS- 11 STIPULATES EFFECT OF CHANGES IN EXCHANGE RATE VI S-A-VIS MONETARY ITEMS DENOMINATED IN A FOREIGN CURRENCY TO BE TAKEN INTO ACCOUNT FOR GIVING ACCOUNTING TREATMENT ON THE BALANCE SHEET DATE. THEREFORE, AN ENTERPRISE HAS TO REPORT THE OUTSTANDING LIABILITY RELATING TO IMPORT OF RAW MATERIALS USING CLOSING R ATE OF EXCHANGE. ANY DIFFERENCE, LOSS OR GAIN ARISING ON CONVERSION OF THE SAID LIABILITY AT THE CLOSING RATE, SHOULD BE RECOGNIZED IN THE PROFIT AND LOSS ACCOUNT FOR THE R EPORTING PERIOD. IN CONCLUSION, IT MAY BE STATED THAT IN ORDER TO FIND OUT IF AN EXPENDITU RE IS DEDUCTIBLE, THE FOLLOWING FACTORS HAVE TO BE TAKEN INTO ACCOUNT (I ) WHETHER THE SYST EM OF ACCOUNTING FOLLOWED BY THE ASSESSEE IS MERCANTILE SYSTEM, WHICH BRINGS INTO DE BIT THE EXPENDITURE AMOUNT FOR WHICH A LEGAL LIABILITY HAS BEEN INCURRED BEFORE IT IS AC TUALLY DISBURSED AND BRINGS INTO CREDIT WHAT IS DUE, IMMEDIATELY IT BECOMES DUE AND BEFORE IT IS ACTUALLY RECEIVED; (II ) WHETHER THE SAME SYSTEM IS FOLLOWED BY THE ASSESSEE FROM TH E VERY BEGINNING AND IF THERE WAS A CHANQE- IN THE SYSTEM, WHETHER THE CHANGE WAS BONA FIDE; {III ) WHETHER THE ASSESSEE HAS 7 ITA NO.946/KOL/2017 M/S MAGMA FINCORP LTD. A.YR. 2013-14 7 GIVEN THE SAME TREATMENT TO LOSSES CLAIMED TO HAVE ACCRUED AND TO THE GAINS THAT MAY ACCRUE TO IT; (IV) WHETHER THE ASSESSEE HAS BEEN CO NSISTENT AND DEFINITE IN MAKING ENTRIES IN THE ACCOUNT BOOKS IN RESPECT OF LOSSES AND GAINS ; (V) WHETHER THE METHOD ADOPTED BY THE ASSESSEE FOR MAKING ENTRIES IN THE BOOKS BOTH I N RESPECT OF LOSSES AND GAINS AS PER NATIONALLY ACCEPTED ACCOUNTING STANDARDS; (VI ) WHE THER THE SYSTEM ADOPTED BY THE ASSESSEE IS FAIR AND REASONABLE OR IS ADOPTED ONLY WITH A VIEW TO REDUCE THE INCIDENCE OF TAXATION. IN VIEW OF THE ABOVE, DEDUCTION OF RS. 2, 83,30,000/- CLAIMED BY THE ASSESSEE IN ITS COMPUTATION OF INCOME IS DISALLOWED AND ADDED B ACK TO THE TOTAL INCOME OF THE ASSESSEE. 5.2. THE LD CITA DELETED THE ADDITION BY OBSERVING AS UNDER:- I HAVE CAREFULLY CONSIDERED THE FACTS OF THE CASE, ASSESSMENT ORDER, THE REMAND REPORT AND THE OTHER MATERIAL BROUGHT ON RECORD. THE ASSES SING OFFICER HAD DISALLOWED AN AMOUNT OF RS. 283.30 LACS SHOWN AS NEGATIVE FIGURE UNDER NOTE 24 AS FINANCE COST ARRIVING OUT OF DERIVATIVE TRANSACTIONS. THE REASON GIVEN FOR. DISALLOWANCE WAS THAT IN ABSENCE OF DETAILS FOR TRANSACTIONS, IT COULD NOT B E DENIED THAT THE TRANSACTIONS WERE RELATED TO THE BUSINESS OF THE ASSESSEE. HOWEVER TH E APPELLANT HAS EXPLAINED THAT THE AMOUNT REDUCED THIS YEAR WAS ACTUALLY RELATED TO TH E REVERSAL OF ENTRY IN THE PREVIOUS YEAR. DURING THE YEAR ENDED ON 3L.03.20 12 THE ASSE SSEE HAD A MTM LOSS ON REINSTATEMENT OF HEDGING TRANSACTIONS OF RS. 522.68 LACS WHICH HAD BEEN CLAIMED IN THE BOOKS OF ACCOUNTS. AT THE TIME OF FILING OF RETURN FOR A.Y 2012-13 THE SAID AMOUNT WAS ADDED BACK WHILE COMPUTING RETURNED INCOME. AS ON 0 L.04.2012 IN THE BOOKS THE SAID LOSS OF RS. 522.68 LACS HAD BEEN REVERSED AND THERE FORE APPEARED AN INCOME SIDE. ALSO AS ON 3L.03.2013 THERE WAS MTM LOSS OF RS. 239.38 W HICH APPEARED AS EXPENDITURE IN THE BOOKS. WHILE FILING OF RETURN FOR THE YEAR, THE APPELLANT REVERSED BOTH THE ENTRIES RESULTING IN NET REDUCTION OF RS. 283.30 LACS. THE APPELLANT HAS PRODUCED COPY OF COMPUTATION OF INCOME FOR BOTH THE YEARS TO SUPPORT ITS CONTENTION. THUS IT CAN BE SEEN THAT THE DEDUCTION IS ON 'ACCOUNT OF REVERSAL OF EN TRY WHICH HAD BEEN CONSIDERED AS PART OF INCOME IN A.Y 2012-13. CONSIDERING THIS, THERE I S NO JUSTIFICATION IN ADDING BACK THE AMOUNT OF RS. 283.30 LACS. THE ADDITION OF RS. 283. 30 LACS IS ACCORDINGLY DELETED. 5.3. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US . 8 ITA NO.946/KOL/2017 M/S MAGMA FINCORP LTD. A.YR. 2013-14 8 5.4. WE HAVE HEARD THE LD DR. WE FIND THAT THE IS SUE UNDER DISPUTE HAD BEEN DEALT ELABORATELY BY THE LD CITA SUPRA WHICH, IN OUR CONS IDERED OPINION, DOES NOT CALL FOR ANY INTERFERENCE. ACCORDINGLY, THE GROUND NO. 3 RAISED BY THE REVENUE IS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS PART LY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 07.12.2018 SD/- SD/ - [S.S. GODARA] [ M .BALAGANESH ] JUDICIAL MEMBER ACCOUNTANT MEM BER DATED : 07.12.2018 SB, SR. PS COPY OF THE ORDER FORWARDED TO: 1. DCIT, CIRCLE-8(1), KOLKATA, AAYAKAR BHAWAN, 5 TH FLOOR, P-7, CHOWRINGHEE SQUARE, KOLKATA-700069. 2. M/S MAGMA FINCORP LTD, 24, PARK STREET, KOLKATA- 700016 3..C.I.T.(A)- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER A SSISTANT REGISTRAR ITAT , KOLKATA BENCHES