2022 (9) TMI 976

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....eal filed by the assessee pertaining to the A.Y. 2006-07 is directed against the order passed u/s. 250 of the Income-tax Act, 1961 ( hereinafter referred to as 'the Act' ) dt. 23-05-2016 of ld. Commissioner of Income-tax ( in short hereinafter referred to as the ld. CIT(Appeals), - 2, Kolkata, which is arising out of assessment order dt. 08-12-2008 passed u/s. 143(3) of the Income-tax Act, 1961 ( ....

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....s.31,580/- made u/s. 40(a)(ia) of the Act. 4. At the outset, Ld. Counsel for the assessee submitted that in view of decision of the Co-ordinate Bench (ITAT, Kolkata) in the case Babul Fiscal Services P.Ltd in ITA No. 318/Kol/2022 dt. 02-08-2022, since no exempt income is earned by the assessee during the year the disallowance made u/s. 14A/r.w.r 8D is uncalled for. As regards the second issue, ....

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..../r.w.r 8D(2) of Rs. 3,87,770/- and disallowance u/s. 40(a)(ia) of the Act for non-deduction of tax at source at Rs.31,580/- on interest expenditure. The assessee failed to get any relief from the ld. CIT(A). 7. Before me for the issue of disallowance made u/s. 14A/r.w.r 8D(2), the reliance has been placed on the decision of this Tribunal ITAT Kolkata) in the case of Babul Fiscal Services P.Ltd ....

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....in making disallowance u/s. 14A/R.W.R 8D. I, therefore, set aside the finding of the ld. CIT(A) and delete the impugned addition Rs.3,87,770/- made by the ld.AO u/s. 14A of the Act. Ground no. (i) of assessee's appeal is allowed. 9. As regards ground no. (ii), I find that the assessee had incurred interest expenditure of Rs. 31,580/-. It was liable to deduct tax at source u/s. 194A of the Act. ....