DCIT, Circle -6 Kolkata, Kolkata V. M/s Ganesh Barter Pvt. Ltd., Kolkata

ITA 967/KOL/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 75064 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2014
• Appeal Filed By: Department
• Bench Allotted: A
• Next Hearing Date: 09-10-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 18-06-2012
• Court: TRIBUNAL
• Department Lawyers: P K CHAKRABORTY
• Section: 143(3); 14A

Judgement Text

, A , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOL KATA () BEFORE , /AND . . . . ' '' ''# '#'# '#, $% ) [BEFORE SHRI MAHAVIR SINGH, JM & SHRI ABRAHAM P. GEORGE, AM] & & & & / I.T.A NO. 967/KOL/2012 '( )* '( )* '( )* '( )*/ // / ASSESSMENT YEAR: 2007-08 DEPUTY COMMISSIONER OF INCOME-TAX, VS. M/S. GANES H BARTER PVT. LTD. CIRCLE-6, KOLKATA (PAN: AABCG7561L (,- /APPELLANT ) (./,-/ RESPONDENT ) DATE OF HEARING: 13.02.2014 DATE OF PRONOUNCEMENT: 13.02.2014 FOR THE APPELLANT: SHRI P. K. CHAKRABORTY, JCIT, SR . DR FOR THE RESPONDENT: SHRI SUJOY SEN, ADVOCATE $0 / ORDER PER SHRI MAHAVIR SINGH, JM: THIS APPEAL BY REVENUE IS ARISING OUT OF ORDER OF C IT(A)-VI, KOLKATA IN APPEAL NO. 750/CIT(A)-V1/09-10/CIR-6/KOL DATED 23.03.2012. AS SESSMENT WAS FRAMED BY DCIT, CIRCLE- 6, KOLKATA U/S. 143(3) R.W.S. 115WE(3) OF THE INCOM E-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2007-08 VIDE HIS ORD ER DATED 20.11.2009. 2. THE REVENUE HAS RAISED THE ONLY ISSUE OF DISALLO WANCE OF EXPENSES BY INVOKING THE PROVISIONS OF SECTION 14A OF THE ACT READ WITH RULE 8D OF I. T. RULES, 1962 (HEREINAFTER REFERRED TO AS THE RULES). FOR THIS, REVENUE HAS R AISED FOLLOWING GROUND: 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE , LD. CIT(A) ERRED IN LAW IN HOLDING THAT DISALLOWANCE UNDER SECTION 14A OF THE INCOME T AX ACT READ WITH RULE 8D OF THE INCOME TAX RULES SHOULD BE LIMITED TO RS.1,97,000/- AS AGAINST RS.12,94,437/- DISALLOWED IN THE ASSESSMENT ORDER. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE HAS EARN ED EXEMPTED INCOME AT RS.1,97,000/- IN THE FORM OF DIVIDEND. THIS ASSESSMENT YEAR IS 2007-08 A ND RULE 8D OF THE I. T. RULES, 1962 WILL NOT APPLY. ACCORDING TO AO, THE ASSESSEE DID NOT DISAL LOW ANY EXPENSES U/S. 14A OF THE ACT. HENCE, AO RELYING ON THE RATIO OF ITO VS. DAGA CAPI TAL MARKET PVT. LTD. (2009) 312 ITR 1 (SB), MUMBAI DISALLOWED AN AMOUNT OF RS.2,45,455/- AS EXPENSES RELATED TO EXEMPTED INCOME. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT(A), WHO RESTRICTED THE DISALLOWANCE AT RS.1,97,000/- AS PER THE SUBMISSIONS OF ASSESSEE. AS THE ISSUE IS COVERED, THAT U/S. 14A OF THE 2 ITA NO.967/K/2012 M/S. GANESH BARTER PVT. LTD. , AY:2007-08 ACT ONLY 1% DISALLOWANCE IS TO BE RESTRICTED BUT HE RE, THE ASSESSEE ITSELF HAS CONCEDED THAT DISALLOWANCE MAY BE MADE AT A SUM OF RS.1,97,000/- AS AGAINST THE EXEMPTED INCOME , WHICH IS MORE THAN 1%. WE DIRECT THE AO TO RECOMPUTE THE DI SALLOWANCE BY RESTRICTING THE DISALLOWANCE AS ASSESSEE ITSELF CONCEDED BEFORE THE CIT(A). THE ENTIRE ADDITION MADE BY AO IS DELETED. REVENUES APPEAL IS DISMISSED. 4. IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. 5. ORDER IS PRONOUNCED IN THE OPEN COURT . SD/- SD/- . . . . ' '' ''# '#'# '# , $% , (ABRAHAM P. GEORGE) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 13TH FEBRUARY, 2014 12 '3' 4 JD.(SR.P.S.) $0 5 . 6$ )7- COPY OF THE ORDER FORWARDED TO: 1 . ,- / APPELLANT- DCIT, CIRCLE-6, KOLKATA. 2 ./,- / RESPONDENT M/S. GANESH BARTER PVT. LTD. , COMME RCE HOUSE, 7 TH FLOOR, ROOM NO.5, 2A, G. C. AVENUE, KOLKATA-700 013 . 3 . 0' ( )/ THE CIT(A), KOLKATA 4. 5. 0' / CIT KOLKATA <= .' / DR, KOLKATA BENCHES, KOLKATA / ./ TRUE COPY, $0'>/ BY ORDER, ' /ASSTT. REGISTRAR .