Income Tax Appellate Tribunal - Kolkata
Ito, Ward-1(4), Kolkata, Kolkata vs M/S. Milestone Shares And Stock Broking ... on 24 August, 2018
आयकर अपील य अधीकरण, यायपीठ - "B" कोलकाता,
IN THE INCOME TAX APPELLATE TRIBUNAL
KOLKATA BENCH "B" KOLKATA
Before Shri S.S.Godara, Judicial Member and
Shri, M. Balaganesh, Accountant Member
ITA No.436/Kol/2017
Assessment Year :2012-13
Income Tax Officer, V/s. M/s. Milestone Share and
W ard-1(4), P-7, Stock Broking Pvt. Ltd., 14,
Chowringhee Princep Street, 1 s t Floor,
Square, Kolkta-69 Kolkata-72
[P AN No. AAFCM 7386 P]
अपीलाथ /Appellant .. यथ /Respondent
अपीलाथ क ओर से/By Appellant Shri S. Dasgupta, Addl. CIT-DR
यथ क ओर से/By Respondent None
सन
ु वाई क तार ख/Date of Hearing 26-07-2018
घोषणा क तार ख/Date of Pronouncement 24-08-2018
आदे श /O R D E R
PER S.S.Godara, Judicial Member:-
This Revenue's appeal for assessment year 2012-13 of Commissioner of Income Tax (Appeals)-2 Kolkata's order dated 05.12.2016 passed in case No.633/CIT(A)-2/15-16, involving proceedings u/s 143(3) of the Income Tax Act, 1961; in short 'the Act'.
2. Case called twice. None appears at the assessee's behest. The Registry has already sent RPAD notice dated 07.06.2018. It is accordingly posted ex parte.
ITA No.436/Kol/2017 A.Y. 2012-13ITO Wd-1(4) Kol. Vs. M/s Milestone Shares and Stock Broking Pvt. Ltd. Page 2
3. The Revenue's sole contention during the course of hearing as per Revenue's pleadings is that CIT(A) has erred in law as well as on facts in reversing the Assessing Officer's action invoking u/s 14A r.w.s. 8D disallowance of ₹1,62,36,681/- comprising of taxpayer's direct, proportionate interest and administrative expenditure under Rule 8D-1(i) to (iii) Income Tax Rules, 1962 involving corresponding sums of ₹1,02,06,385/-, 58,52,707/- and ₹8,50,541/-; respectively. There is no dispute about the assessee having derived exempt income of ₹2,54,427/- from dividends. The Assessing Officer invoked the above computation in his assessment order dated 30.03.2015.
4. Coming to CIT(A)'s order, we find that he has directed the Assessing Officer to re-examine correctness of all the three heads of expenditure. He first of all takes note of the fact that assessee's also engaged in securities trading in market and therefore the direct expenditure disallowance of ₹1,02,06,384/- pertains to its business activity. Coming to second issue of proportionate interest expenditure disallowance (supra), the CIT(A) concludes that interest expenditure of ₹4,64,815/- pertains to secured loan creditors. Further amount of ₹19,19,774/- is stated to be representing delayed payment charges to the brokers with whom shares and securities trading had been done. The CIT(A) thereafter concludes regarding administrative expenditure that only the dividend yielding investment have to be taken into consideration as per this tribunal's decision in REI Agro Ltd. Vs. DCIT (2013) 144 ITD (141) (Kol). It is therefore evident that the CIT(A) has directed the Assessing Officer to verify all these facts in re-examination exercise and make the impugned disallowance related to exempt income yielding investments only.
5. Mr. Dasgupta at this stage quotes section 251(1)(a) of the Act before us. His case is that the crucial expression therein "or he may set aside"
regarding CIT(A)'s jurisdiction to remand the case to the Assessing Officer stands omitted with effect from 01.06.2001 by the Finance Act, 2001. There can be no dispute about the instant legal contention. The fact however ITA No.436/Kol/2017 A.Y. 2012-13 ITO Wd-1(4) Kol. Vs. M/s Milestone Shares and Stock Broking Pvt. Ltd. Page 3 remains that the Assessing Officer had not considered all the above stated details in his assessment order at the time of invoking the impugned disallowance. We therefore accept the Revenue's above legal plea for statistical purpose and restore the instant appeal back to the Assessing Officer ourselves for independent examination of the above sole issue as per law after affording adequate opportunity of hearing to the assessee.
5. This Revenue's appeal is allowed for statistical purposes.
Order pronounced in the open court 24/08/2018
Sd/- Sd/-
(लेखा सद%य) ( या'यक सद%य)
(M.Balaganesh) (S.S.Godara)
(Accountant Member) (Judicial Member)
Kolkata,
*Dkp, Sr.P.S
(दनांकः- 24/08/2018 कोलकाता ।
आदे श क त ल प अ े षत / Copy of Order Forwarded to:-
1. अपीलाथ /Appellant-ITO Ward-1(4), P-7, Chowringhee Sq. Kolkata-69
2. यथ /Respondent-M/s Milestone Shares & Stock Broking Pvt. Ltd.14, Princep Street 1st Floor, Kolkata-72
3. संब3ं धत आयकर आय4 ु त / Concerned CIT Kolkata
4. आयकर आय4 ु त- अपील / CIT (A) Kolkata
5. 7वभागीय 'त'न3ध, आयकर अपील य अ3धकरण, कोलकाता / DR, ITAT, Kolkata
6. गाड< फाइल / Guard file.
By order/आदे श से, /True Copy/ Sr. Private Secretary, Head of Office/DDO आयकर अपील य अ3धकरण, कोलकाता ।