PREMIER VINIMAY PRIVATE LIMITED,KOLKATA, WEST BENGAL V. ITO, KOLKATA, WEST BENGAL

ITA 1786/KOL/2024

AI Insights

The case involves Premier Vinimay Private Ltd., the appellant, contesting an addition of Rs.1,49,298 to their income as confirmed by the Addl/JCIT(A)-2, Jaipur. The addition was initially made by the Assessing Officer (AO) under the provisions of section 14A read with Rule 8D, which pertains to disallowance of expenses incurred in relation to income not chargeable to tax. The main contention in the appeal was whether the addition was justified given that the assessee did not earn any exempt income during the relevant assessment year. The Income Tax Appellate Tribunal, Kolkata, after reviewing the submissions and the orders of the lower authorities, concluded that the addition was not warranted as no exempt income was earned or claimed by the assessee in their return of income for the year 2013-2014.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 361009 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2013-2014
• Laws Referred To: Section 14A r.w. Rule 8D
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JITENDRA KANTILAL SURTI
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.1786/KOL/2024 (निर्धारण वर्ा / Assessment Year : 2013-2014) Premier Vinimay Private Ltd. 2nd Floor, Room No.74, 2B, Grant Lane, Kolkata-700012 Vs ITO, Kolkata, West Bengal PAN No. :AAECP 1655 R (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by : None रधजस्व की ओर से /Revenue by : Shri Jitendra Kantilal Surti, JCIT सुनवाई की तारीख / Date of Hearing : 21/05/2025 घोषणा की तारीख/Date of Pronouncement : 21/05/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order dated 16.07.2024 passed by the ld. Addl/JCIT(A)-2, Office of the CIT(A), Jaipur in DIN & Order No.ITBA/APL/S/250/2024-25/1066763322(1) for the assessment year 2013-2014. 2. None represented on behalf of the assessee when the matter was called for hearing. Shri Jitendra Kantilal Surti, ld JCIT/Sr DR appeared for the revenue. 3. It was submitted by ld Sr. DR that the only issue in assessee’s appeal is against the confirmation of addition of Rs.1,49,298/- made by the AO invoking the provisions of section 14A r.w. Rule 8D. It was the submission that the ld Addl/JCIT(A) has confirmed the addition and the same is liable to be upheld. ITA No.1786/Kol/2024 2 4. We have considered the submissions of ld Sr DR and perused the orders of authorities below. Page 23 of the order of ld Addl./JCIT(A)-2, Jaipur shows that the assessee has not earned any exempt income during the said year. This finding of the ld Addl/JCIT(A) has not been dislodged by the revenue. When there is no exempt income earned and the impugned year in the present case is assessment year 2013-14, obviously the provisions of section 14A r.w. Rule 8D cannot be brought into play. As there is no exempt income earned by the assessee nor claimed by the assessee in his return of income, the addition as made by the AO and as confirmed by ld Addl/JCIT(A)-2, Jaipur stands deleted. 5. It would also be worthwhile to mention that even in page 4 of the assessment order in para 3(d), the AO admits that the assessee did not earn any income during the year under consideration, which is exempt from tax. It is also noticed that the Assessing Officer and ld Addl./JCIT(A) have relied on the CBDT Circular No.5/14 dated 11.02.2014. Admittedly, the circulars issued by CBDT are binding on the Assessing Authority. However, we are surprised that the learned Appellate Authority, who is supposed to be an independent authority, has succumbed to the pressure of the circular issued by the CBDT. 6. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 21/05/2025. Sd/- (RAKESH MISHRA) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 21/05/2025 Prakash Kumar Mishra, Sr.P.S. ITA No.1786/Kol/2024 3 आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata. 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// "