Roger Engineering Pvt. Ltd., , Kolkata V. ITO, Ward - 12(4), Kolkata , Kolkata

ITA 996/KOL/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2221 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-11-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 14-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ROBIN CHOUDHUR Y
• Keywords: Earning of tax free income; Proportionate interest
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC KOLKATA BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.996/KOL/2018 ASSESSMENT YEAR:2013-14 ROGER ENGINEERING PVT. LTD. P-26, TRANSPORT DEPOT, KOLKATA-700088 [ PAN NO.AACCR 8553 Q ] / V/S . INCOME TAX OFFICER WARD-12(4), KOLKATA /APPELLANT .. /RESPONDENT /BY APPELLANT NONE /BY RESPONDENT SHRI ROBIN CHOUDHURY, ADDL. CIT-DR /DATE OF HEARING 08-11-2018 /DATE OF PRONOUNCEMENT 16-11-2018 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2013-14 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-4, KOLKATAS O RDER DATED 12.03.2018 PASSED IN CASE NO.-1/CIT(A)-4/2016-17/KOL INVOLVING PROCEEDI NGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. CASE CALLED TWICE. NONE APPEARED AT ASSESSEES BEHE ST DESPITE SERVICE OF NOTICE. IT IS ACCORDINGLY PROCEEDED EX PARTE . 2. THE ASSESSEES ONLY SUBSTANTIVE GROUND RAISED IN THE INSTANT APPEAL CHALLENGES CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION IN VOKING U/S14A R.W.S. RULE 8D(2)III) DISALLOWANCE ON PROPORTIONATE INTEREST AND ADMINIST RATIVE EXPENDITURE TOTALING TO 2,46,038/- OVER AND ABOVE SUO MOTU DISALLOWANCE OF 30,487/- IN THE COURSE OF ASSESSMENT FRAMED ON 2902.2016 HAS AFFIRMED IN LOWE R APPELLATE PROCEEDINGS. THE ASSESSING OFFICER INVOKED U/S 14A R.W.S. RULE 8D TO DISALLOW DIRECT EXPENDITURE, PROPORTIONATE INTEREST AND ADMINISTRATIVE EXPENSES OF 561,82,46,038/- & 3,487/-; ITA NO.996/KOL/2018 A.Y.2013 -14 ROGER ENGINEERING PVT. LTD. VS. ITO WAR D-12(4), KOL. PA GE 2 RESPECTIVELY TOTALLING TO 2,82,143/- AS REDUCED TO SUO MOTU DISALLOWANCE OF 36,105/- COMING TO 2,46,038/-. THE CIT(A) HAS AFFIRMED THE SAME. 3. I HAVE GIVEN MY THOUGHTFUL CONSIDERATION TO REVE NUES VEHEMENT CONTENTION IN SUPPORT OF IMPUGNED DISALLOWANCE. LEARNED DEPARTMEN TAL REPRESENTATIVE FAILS TO DISPUTE THAT ASSESSEES DIVIDED INCOME IN THE IMPUG NED ASSESSMENT YEAR IS 80,318/- FROM DIVIDEND. I THEREFORE RESTRICT THE IMPUGNED DI SALLOWANCE TO THE EXTENT OF EXEMPT INCOME ONLY AND GRANT PART RELIEF TO THE ASSESSEE I N VIEW OF HON'BLE DELHI HIGH COURTS DECISION IN CIT VS. JOINT INVESTMENT LTD. 372 ITR 694 (DEL). 4. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOV E TERMS. ORDER PRONOUNCED IN OPEN COURT ON 16/11/2018 SD/- (S.S. GODARA) JUDICIAL MEMBE R KOLKATA, *DKP/SR.PS - 16/11/2018 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-ROGER ENGINEERING PVT. LTD. P-26, TRANSP ORT DEPOT, KOL-088 2. /RESPONDENT-INCOME TAX OFFICER, WARD-12(4), KOLKATA 3. ' % / CONCERNED CIT 4. % - / CIT (A) 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORDER/ , /TRUE COPY/ / ',