I.T.O.,Ward-1(4), Kolkata V. M/s Neelanchal Mercantile Pvt. Ltd., Kolkata

ITA 95/KOL/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 2786 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 23-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rule 8D
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B (VIRTUAL COURT HEARING) BENCH KOLKATA BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER I.T.A. NO.95/KOL/2020 ASSESSMENT YEAR: 2012-13 ITO, WARD-1(4), KOLKATA.........APPELLANT VS. M/S NEELANCHAL MERCANTILE PVT. LTD................RESPONDENT 14, PRINCEP STREET, 1 ST FLOOR, KOLKATA-700072. [PAN:AAACN8842N] APPEARANCES BY: SHRI TUSHAR DHAWAL SINGH, CIT, APPEARED ON BEHALF OF THE APPELLANT. NONE APPEARED ON BEHALF OF THE RESPONDENT. DATE OF CONCLUDING THE HEARING : SEPTEMBER 07, 2021 DATE OF PRONOUNCING THE ORDER : OCTOBER 26, 2021 HEARING THROUGH VIDEO CONFERENCING ORDER PER SHRI SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENUE AGAINST THE ORDER DATED 14.11.2019 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-7, KOLKATA (HEREINAFTER REFERRED TO AS CIT) PASSED U/S 143(3) OF THE INCOME TAX ACT. 2. NO ONE HAS PUT IN APPEARANCE ON BEHALF OF THE ASSESSEE. HOWEVER, AFTER GOING THROUGH THE IMPUGNED ORDER AND THE AVAILABLE RECORDS ON THE FILE AND AFTER HEARING THE LD. DR, WE PROCEED TO ADJUDICATE THE APPEAL. 3. THE SOLE ISSUE INVOLVED IN THE APPEAL IS RELATING TO DISALLOWANCE MADE BY THE ASSESSING OFFICER U/S 14A R.W. RULE 8D IN RESPECT DISALLOWANCE OF EXPENDITURE ON TAX EXEMPTION INCOME OF THE ASSESSEE. 4. A PERUSAL OF THE IMPUGNED ORDER OF THE LD. CIT(A) REVEALS THAT THE LD. CIT(A) WHILE RELYING UPON THE DECISION OF THE HONBLE SUPREME COURT IN THE CASES OF PCIT VS. STATE BANK OF PATIALA [(2017) 78 TAXMANN.COM 3(SC)] AND MAXOPP INVESTMENT LTD. VS. CIT [(2018) 91 TAXMANN.COM 154(SC)] HAS RESTRICTED THE DISALLOWANCE TO THE EXTENT OF I.T.A. NO.95/KOL/2020 M/S NEELANCHAL MERCANTILE PVT. LTD ASSESSMENT YEAR: 2012-13 2 TAX EXEMPT DIVIDEND INCOME EARNED BY THE ASSESSEE. THE LD. DR COULD NOT POINT OUT ANY CONTRARY DECISION IN THIS RESPECT. IN VIEW OF THIS, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT(A) AND THE SAME IS UPHELD AND THE APPEAL OF THE REVENUE IS HEREBY DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. KOLKATA, THE 26 TH OCTOBER, 2021. SD/- SD/- [MANISH BORAD] [SANJAY GARG] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 26.10.2021. RS COPY OF THE ORDER FORWARDED TO: 1. ITO, WARD-1(4), KOLKATA 2. M/S NEELANCHAL MERCANTILE PVT. LTD 3. CIT(A)- 4. CIT- , 5. CIT(DR), //TRUE COPY// BY ORDER SR.PS/D.D.O, KOLKATA BENCHES