M/s Assam Bengal Carriers, Kolkata v. ACIT,Cir-40, Kolkata

ITA 618/KOL/2019 | 2015-2016
Pronouncement Date: 22-11-2019 | Result: Partly Allowed

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Appeal Details

RSA Number 61823514 RSA 2019
Assessee PAN AAFFA0462R
Bench Kolkata
Appeal Number ITA 618/KOL/2019
Duration Of Justice 7 month(s) 25 day(s)
Appellant M/s Assam Bengal Carriers, Kolkata
Respondent ACIT,Cir-40, Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 22-11-2019
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted B
Tribunal Order Date 22-11-2019
Last Hearing Date 31-10-2019
First Hearing Date 31-10-2019
Assessment Year 2015-2016
Appeal Filed On 28-03-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL B BENC H KOLKATA BEFORE SHRI S.S.GODARA JM &DR. A.L.SAINI AM ./ITA NO.618/KOL/2019 ( / ASSESSMENT YEAR: 2015-16) M/S ASAM BENGAL CARRIERS C/O V. N. PUROHIT & CO. CHARTERED ACCOUNTANTS DIAMOND CHAMBERS UNIT-III SUIT NO. 4G 4 TH FLOOR 4 CHOWRINGHEE LANE KOLKATA VS. ACIT CIRCLE-40 KOLKATA ./ ./PAN/GIR NO.: AAFFA 0462 R (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI H.V. BHARDWAJ FCA RESPONDENT BY : SMT. RANU BISWAS ADDL. CIT / DATE OF HEARING : 31/10/2019 /DATE OF PRONOUNCEMENT : 22/11/2019 / O R D E R PER BENCH: THE CAPTIONED APPEAL FILED BY THE ASSESSEE PE RTAINING TO ASSESSMENT YEAR 2015-16 IS DIRECTED AGAINST THE ORDER PASSED BY TH E COMMISSIONER OF INCOME TAX (APPEAL)-12 KOLKATA IN APPEAL NO. 10077/CIT(A)-12/ AC CIR-40/2017-18 WHICH IN TURN ARISES OUT OF AN ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S 143(3) OF THE INCOME TAX ACT 1961 (IN SHORT THE A CT) DATED 20/11/2017. 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE AS FOLLOWS: 1. THAT THE LD. CIT(A) HAS ERRED IN HOLDING THAT A SSESSING OFFICER OUGHT TO HAVE ADDED TO RS. 1 72 00 000/- AS AGAINST RS. 1 32 47 120/- U/S 14A/ RULE 8D(2)(1). M/S ASAM BENGAL CARRIERS ITA NO.618/KOL/2019 ASSESSMENT YEAR:2015-16 P PP PA AA AG GG GE EE E | || | 2 22 2 2. THAT THE LD. CIT(A) HAS FURTHER ERRED IN NOT CON SIDERING THE SUBMISSION OF ASSESSEE THAT THE ADDITION U/S 14A RULE 8D CANNOT E XCEED THE AMOUNT OF INCOME CLAIMED AS EXEMPTED BEING RS. 9 93 439/- IN THIS CASE THEREBY NOT FOLLOWING JUDICIAL DECORUM IN ACCEPTING DECISION OF ITAT KOLKATA AND OTHER CITED. 3. THAT THE APPELLANT CRAVES LEAVE TO ADD TO AMEND OR WITHDRAW TO ANY GROUND ON OR BEFORE THE HEARING OF THE APPEAL. 3. BRIEF FACTS QUA THE ISSUE ARE THAT THE ASSESSEE FILED HIS RETURN OF INCOME FOR A.Y. 2015-16 ON 22.03.2016 DECLARING TOTAL INCOME AT RS. 26 61 140/- AND SUBSEQUENTLY THE ASSESSEE REVISED HIS RETURN OF INCOME ON 21.02. 2017 DECLARING TOTAL INCOME OF RS. NIL. THE ASSESSEES CASE WAS SELECTED FOR SCRUT INY ASSESSMENT U/S 143(2) AND THE ASSESSING OFFICER FRAMED THE ASSESSMENT U/S 143 (3) OF THE ACT. ASSESSEE RECEIVED DIVIDEND INCOME OF RS. 9 93 439/- DURING T HE ASSESSMENT YEAR UNDER CONSIDERATION. DURING THE ASSESSMENT PROCEEDINGS T HE ASSESSING OFFICER COMPUTED THE DISALLOWANCE UNDER RULE 8D(2)(II) AND 8D(2)(III) READ WITH SECTION 14A OF THE ACT AT RS. 1 32 47 120/-. 4. AGGRIEVED BY THE ORDER OF THE ASSESSING OFFICER THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A) WHO HAS CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER. 5. AGGRIEVED THE ORDER OF THE LD. CIT(A) THE ASSESS EE IS IN APPEAL BEFORE US. 6. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED BEFOR E THE BENCH THAT THE ADDITION IF ANY U/S 14A READ WITH RULE 8D SHOULD NOT EXIST THE AMOUNT OF INCOME EXEMPT BEING RS. 9 93 439/- AND PRAYED THE BENCH THAT ADD ITION U/S 14A SHOULD BE RESTRICTED TO RS. 9 93 439/- IN THE LIGHT OF THE VA RIOUS PRECEDENTS AVAILABLE ON THIS ISSUE. M/S ASAM BENGAL CARRIERS ITA NO.618/KOL/2019 ASSESSMENT YEAR:2015-16 P PP PA AA AG GG GE EE E | || | 3 33 3 7. HOWEVER ON THE OTHER HAND THE LD. DR HAS PRIMA RILY REITERATED THE STAND TAKEN BY THE ASSESSING OFFICER WHICH WE HAVE ALREADY NOTE D IN OUR EARLIER PARA AND THE SAME IS NOT BEING REPEATED FOR THE SAKE OF BREVITY. 8. WE HEARD BOTH THE PARTIES AND CAREFULLY GONE THR OUGH THE SUBMISSION PUT FORTH ON BEHALF OF THE ASSESSEE ALONG WITH THE DOCUMENTS FURNISHED AND THE CASE LAWS RELIED UPON AND PERUSED THE FACT OF THE CASE INCLU DING THE FINDINGS OF THE LD CIT(A) AND OTHER MATERIALS AVAILABLE ON RECORD. WE NOTE THAT IN PLETHORA OF JUDGMENTS THE VARIOUS HIGH COURTS HAVE HELD THAT T HE DISALLOWANCE U/S 14A READ WITH RULE 8D SHOULD NOT EXCEED THE AMOUNT OF EXEMPT INCOME. THE LD. COUNSEL HAS CONTENDED BEFORE THE BENCH THAT THE DISALLOWAN CE U/S 14A CANNOT EXCEED THE EXEMPT INCOME RECEIVED BY THE ASSESSEE. WE NOTE THA T IN THE FOLLOWING JUDGMENTS OF VARIOUS HONBLE HIGH COURTS IT HAS BEEN HELD TH AT DISALLOWANCE U/S 14A READ WITH RULE 8D SHOULD NOT EXCEED THE EXEMPT INCOME RE CEIVED BY THE ASSESSEE. I) CIT VS. CORTECH ENERGY PVT. LTD. REPORTED IN 325 ITR 97 (GUJ) II) CIT VS. HALSIM INDIA PVT. LTD. REPORTED IN 111 DTR 158 (DEL) III) CIT VS. SHIVA MOTORS PVT. LTD. REPORTED IN 111 DTR 153 (ALL) RESPECTFULLY FOLLOWING THE JUDGMENTS OF THE VARIOUS HIGH COURTS ON THE ISSUE UNDER CONSIDERATION WE DIRECT THE ASSESSING OFFICE R TO RESTRICT THE DISALLOWANCE U/S 14A TO THE EXTENT OF THE EXEMPTED INCOME. 9. IN THE RESULT THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 22.1 1.2019 SD/- ( S.S.GODARA ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER /KOLKATA; / DATE: 22/11/2019 ( SB SR.PS ) M/S ASAM BENGAL CARRIERS ITA NO.618/KOL/2019 ASSESSMENT YEAR:2015-16 P PP PA AA AG GG GE EE E | || | 4 44 4 COPY OF THE ORDER FORWARDED TO: 1. M/S ASAM BENGAL CARRIERS 2. ACIT CIRCLE-40 KOLKATA 3. C.I.T(A)- 4. C.I.T.- KOLKATA. 5. CIT(DR) KOLKATA BENCHES KOLKATA. 6. GUARD FILE. TRUE COPY BY ORDER ASSIST ANT REGISTRAR ITAT KOLKA TA BENCHES