ITO, WARD-2(4), DURGAPUR vs. SHRI VISHNU KHAITAN, DURGAPUR

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ITA 160/KOL/2022Status: DisposedITAT Kolkata25 April 2023AY 2019-203 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable due to the tax effect being below the threshold stipulated in CBDT Circular No. 17 of 2019. Therefore, the appeal should have been dismissed at the outset.

What were the facts?

The Revenue appealed the deletion of disallowance for employees' contribution to PF and ESI. The Tribunal had previously restored the appeal after the Revenue cited a Supreme Court judgment. However, upon fresh adjudication, the Tribunal noted the low tax effect involved.

What were the issues?

Whether the appeal is maintainable before the Tribunal when the tax effect is below the prescribed monetary limit, irrespective of the merits of the case.

Which sections of the Income-tax Act were involved?

Not explicitly mentioned in relation to the dismissal reason, but the context relates to disallowances of expenses.

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, ‘SMC’ BENCH, KOLKATA

Before: Shri Rajpal Yadav, Vice- & Shri Rajesh Kumar

Per Shri Rajpal Yadav, Vice-President (KZ):- This appeal is preferred by the Revenue against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 25th August, 2021 for assessment year 2019-20. 2. The solitary grievance of the Revenue is that ld. CIT(Appeals) has erred in deleting the disallowance of 1

1.

Shri Vishnu Khaitan Rs.2,17,850/- (employees contribution to P.F.) and ESI Rs.63,681/-. This appeal was dismissed on merit by the Tribunal vide its order dated 07.06.2022. Dissatisfied with the order, Revenue filed a Miscellaneous Application bearing No. 53/KOL/2022. The stand of the Revenue was that Hon’ble Supreme Court has reversed the position of law as relied upon by the ld. CIT(Appeals), in the judgment of Checkmate Services Pvt. Limited –vs.- CIT (2022) 143 taxman.com 178 (SC). Relying upon the judgment, Tribunal has allowed the application of the Revenue and restored the appeal to its original number.

3.

In response to the notice of hearing, no one has come present on behalf of the assessee. With the assistance of ld. D.R., we have gone through the record carefully. A perusal of the grounds of appeal would reveal that tax effect involved in this appeal is Rs.1,07,471/-. This appeal is not maintainable because of the Department’s Circular No. 17 of 2019 issued on 8th August 2019. According to this Circular, the CBDT has prohibited its subordinate authorities to challenge the order of ld. CIT(A) where tax effect by virtue of relief given by the CIT(A) is less than Rs.50 lakhs.

4. No doubt, Tribunal has restored this appeal for fresh adjudication, but we are of the view that at the first instance itself, this appeal should have been dismissed for want of tax effect and it should have not been restored by us on the request Shri Vishnu Khaitan of the Revenue vide M.A. No. 53/KOL/2022. Even if, the decision of the Hon’ble Supreme Court has come but that aspect can only be looked into, if it is found that tax effect is more and order of the ld. CIT(A) is challengeable before the Tribunal. The ITAT has no jurisdiction to go into all these aspects once it is established that tax effect is less than Rs.50 lakhs.

5.

In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on April 25, 2023.

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