Global Exim Pvt. Limited v. ITO, Ward-6(2), Kolkata
[Citation -2019-LL-0823-42]

Citation 2019-LL-0823-42
Appellant Name Global Exim Pvt. Limited
Respondent Name ITO, Ward-6(2), Kolkata
Court ITAT-Kolkata
Relevant Act Income-tax
Date of Order 23/08/2019
Assessment Year 2014-15
Judgment View Judgment
Keyword Tags dividend income • exempt income • reasonable opportunity of being heard • ex-parte
Bot Summary: Sr.DR Date of Hearing : 11/06/2019 Date of Pronouncement: 23/08/2019 ORDER Per Dr. A. L. Saini, AM: The captioned appeal filed by the assessee, pertaining to assessment year 2014-15, is directed against the order dated 16-10-2018 passed by the ld. Commissioner of Income Tax, 18, Kolkata, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) of the Income Tax Act, 1961 dated 01.12.2016. Grounds of appeal raised by the assessee are as follows:- 1. At the time of hearing none appeared on behalf of assessee in spite of issuance of notice for hearing more than one occasions. In the absence of any appearance of the assessee, the appeal is being disposed of ex parte qua the assesse after hearing the ld. The assessee has not earned dividend income during the year under consideration. In the result, the appeal of the assessee is allowed.


IN INCOME TAX APPELLATE TRIBUNAL, C BENCH, KOLKATA BEFORE SHRI A.T, VARKEY, JM & DR. A.L. SAINI, AM ITA No. 126/Kol/2019 (Assessment Year: 2014-15) M/s. Global Exim Pvt. Limited Vs. I.T.O., Ward 6(2),, Kolkata PAN: AADCG0037H (Appellant) (Respondent) Appellant by : None Revenue by : Shri Sanjay Mukherjee, Addl.CIT, ld. Sr.DR Date of Hearing : 11/06/2019 Date of Pronouncement: 23/08/2019 ORDER Per Dr. A. L. Saini, AM: captioned appeal filed by assessee, pertaining to assessment year 2014-15, is directed against order dated 16-10-2018 passed by ld. Commissioner of Income Tax (Appeal), 18, Kolkata, which in turn arises out of assessment order passed by Assessing Officer u/s 143(3) of Income Tax Act, 1961 (in short Act ) dated 01.12.2016. 2. Grounds of appeal raised by assessee are as follows:- 1. That on facts and circumstances of case, ld. CIT(A) is unjustified in upholding addition of Rs.3,02,307/- made by ld. AO u/s. 14A read with Rule 8D of Income Tax Rules. 2. That on facts and in circumstances of case and in law, ld. CIT(A) has erred in confirming disallowance amounting to Rs.3,02,307/- invoking provisions of section 14A without evaluating same on merit. 3. That on facts and in circumstances of case and in law, ld.CIT(A) has erred in upholding application of section 14A read with Rule 8D without any note of dissatisfaction in this regard. 2 ITA No.126/Kol/2019 M/s. Global Exim Pvt. Ltd. 4. That on facts and in circumstances of case, appellant has not been given reasonable opportunities of being heard. 5. That appellant craves leave to add, alter, adduce or amend any ground(s) on or before date of hearing of appeal. 3. At time of hearing none appeared on behalf of assessee in spite of issuance of notice for hearing more than one occasions. learned Departmental Representative ( ld.DR) was present for appellant revenue. In absence of any appearance of assessee, appeal is being disposed of ex parte qua assesse after hearing ld. DR for revenue on merits in terms of Rule 24 of ITAT Rules, 1963. 4. At outset itself learned Departmental Representative ( ld.DR) submitted before us that based on assessment records and assessment order framed by AO if there is no exempt income, there should not be any disallowance u/s. 14A/R.W.R 8D of I.T Rules, 1962. ld. DR for revenue pointed out that it is settled position of law that if there is no exempt income, then no disallowance should be made u/s. 14A/R.W.R 8D of I.T Rules, 1962. 5. After hearing ld. DR for revenue, we note that issue involved in this assessee s appeal is no longer res integra. assessee has not earned dividend income during year under consideration. Therefore, there should not be any disallowance. For this, we rely on judgment of Hon ble Delhi High Court in case of CIT Vs. Holi Chem Pvt. Ltd in ITA No.486 of 2014, wherein it was held that in absence of any tax free income corresponding expenditure could not be disallowed u/s. 14A/R.W.R 8D of Rules. We also note Hon ble Delhi High Court in case of M/s. Chem Investment Ltd in ITA No. 741 of 2014, order dated 2/9/205, wherein it was held that section 14A will not apply if 3 ITA No.126/Kol/2019 M/s. Global Exim Pvt. Ltd. exempt income is not received by assessee during assessment year under consideration. Therefore in view of above, disallowance u/s. 14A/R.W.R 8D of Rules is not sustainable. Hence, we allow assessee s appeal. 6. In result, appeal of assessee is allowed. Order pronounced in open court on this 23/08/2019 Sd/- Sd/- (A.T. Varkey) (A. L. Saini) JUDICIAL MEMBER ACCOUNTANT MEMBER Kolkata; Dated: 23/08/2019 PP, Sr.PS Copy of Order forwarded to : 1. Appellant- M/s. Global Exim Private Limited, 1 Kyd Street, 16 Palace Court, Kolkata-1, W.B. 2. Respondent.- Income Tax Officer, Ward-6(2), P-7 Chowinghee Square, 6th Fl., Kolkata-69,W.B . 3. CIT(A), 4.CIT 5. DR, ITAT, Kolkata 6. Guard file. True Copy By Order Assistant Registrar, I.T.A.T, Kolkata Benches, Kolkata Global Exim Pvt. Limited v. ITO, Ward-6(2), Kolkata
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