Calcutta High Court
C I T Central-I vs Kanak Packaging Products P Ltd on 29 April, 2015
Author: Girish Chandra Gupta
Bench: Girish Chandra Gupta
ORDER SHEET
IN THE HIGH COURT AT CALCUTTA
Special Jurisdiction (Income Tax)
ORIGINAL SIDE
ITA No. 17 of 2000
C I T CENTRAL-I,CAL.
Versus
KANAK PACKAGING PRODUCTS P LTD.
BEFORE:
The Hon'ble JUSTICE GIRISH CHANDRA GUPTA
The Hon'ble JUSTICE ARINDAM SINHA
Date : 29th April, 2015.
Md. Nizamuddin, Adv. for the Appellant
Mr. Suvashis Sengupta, Adv. with Mr. Soumyajit
Mishra, Adv. for the Respondent.
The Court : The appeal was presented on 5th January, 2000. Thereafter, no steps were taken to have the appeal admitted. However, pursuant to rule issued by this Court,the assessee has appeared and is represented by counsel.
Mr. Nizamuddin appearing for the appellant-revenue submitted that the learned Tribunal has allowed deduction of interest incurred for the purpose of earning dividend. Therefore, the order is clearly bad. The submission of Mr. Nizamuddin is of no consequence because the assessment year under consideration is 1989-90. The income by way of dividend became exempted from taxation with effect from 1st April, 2004. Prior thereto, the income arising out of dividend was not tax free. Therefore, any expenditure incurred for the income would be allowable and the learned Tribunal has taken the correct view of the matter. Therefore, there is no reason why the appeal should be admitted. The appeal is therefore dismissed.
(GIRISH CHANDRA GUPTA, J.) (ARINDAM SINHA, J.) km