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Addition u/s 68 of the act—In the instant case, The assessee is a company and during the previous year it has raised share capital amounting to 27,09,500/-. The share premium was worth 5,46,40,500/-. The assessing officer made an addition u/s 68 of the Act, of an amount of 5,73,50,000/-. Counsel for the assessee submits that the AO has not given adequate opportunity and has passed an order without enquiring. He supports the order of the Ld. CIT(A). The ld. D/R, though not leaving his ground submitted that this matter may be restored to the Assessing Officer for fresh adjudication, in accordance with law. Held that—The Kolkata Bench of the ITAT has passed similar order in many cases on the same issue of additions made u/s 68 of the share capital, has set aside the assessment to the file of the AO for fresh adjudication in the lines stated above after giving the assessee adequate opportunity of being heard.
We set aside this issue to the file of the AO for fresh adjudication and in accordance with law, after giving the assessee adequate opportunity of being heard. Accordingly Ground No. 3 of the assessee is allowed for statistical purposes.
Disallowance u/s 14A r.w.r. 8D — Held that— We find that it is not in dispute that the assessee has no income from dividends which is exempt u/s 10 of the Act, during the Assessment Year under consideration. Under these circumstances, there cannot be any disallowance u/s 14A of the Act, as held by the Hon’ble Jurisdictional High Court in the case of CIT vs. Ashika Global Securities Ltd. [2018][CALCUTTA HIGH COURT]. Hence, we delete the disallowance in question and allow this ground of appeal of the assessee.

Shanti Prime Publication Pvt. Ltd.

Section 14A, 68, 131 of Income Tax Act, 1961—Addition u/s 68 of the act—In the instant case, The assessee is a company and during the previous year it has raised share capital amounting to 27,09,500/-. The share premium was worth 5,46,40,500/-. The assessing officer made an addition u/s 68 of the Act, of an amount of 5,73,50,000/-.

Counsel for the assessee submits that the AO has not given adequate opportunity and has passed an order without enquiring. He supports the order of the Ld. CIT(A). The ld. D/R, though not leaving his ground submitted that this matter may be restored to the Assessing Officer for fresh adjudication, in accordance with law.

Held that—The Kolkata Bench of the ITAT has passed similar order in many cases on the same issue of additions made u/s 68 of the share capital, has set aside the assessment to the file of the AO for fresh adjudication in the lines stated above after giving the assessee adequate opportunity of being heard.
We set aside this issue to the file of the AO for fresh adjudication and in accordance with law, after giving the assessee adequate opportunity of being heard. Accordingly Ground No. 3 of the assessee is allowed for statistical purposes.
Disallowance u/s 14A r.w.r. 8D — Held that— We find that it is not in dispute that the assessee has no income from dividends which is exempt u/s 10 of the Act, during the Assessment Year under consideration. Under these circumstances, there cannot be any disallowance u/s 14A of the Act, as held by the Hon’ble Jurisdictional High Court in the case of CIT vs. Ashika Global Securities Ltd. [2018][CALCUTTA HIGH COURT]. Hence, we delete the disallowance in question and allow this ground of appeal of the assessee.[M/S. SWARANSATHI VYAPAAR PVT. LTD. VERSUS INCOME TAX OFFICER, WARD-5 (1) , KOLKATA] [2018] [7] [ITCD Online] [27] [ITAT KOLKATA]