What did the Tribunal hold?

The Tribunal found that the tax effect was below the monetary limit and the Revenue had not clearly established the applicability of any exception clause. Therefore, the appeal was dismissed.

The Revenue filed an appeal with a delay, which was condoned. The assessee argued that the appeal was below the monetary limit prescribed by a CBDT circular. The Revenue contended that an exception clause applied.

What were the issues?

Whether the Revenue's appeal should be dismissed on the grounds of being below the monetary limit prescribed by CBDT Circular No. 9/2024, and if any exception clause applied.

DCIT vs Newleaf Realtors Private Limited | ITAT Kolkata 2026

Income Tax Appellate Tribunal, “SMC” BENCH,

Before: SHRI GEORGE MATHAN

Hearing: 05/05/2026Pronounced: 05/05/2026

Heard together (2 matters)

C.O No.6/Kol/2026

ITA No.3010/Kol/2025

Read from the judgment's own cause title. This page is filed under one of them.

आदेश / O R D E R Per George Mathan, JM: ITA 3010/Kol/2025 is an appeal filed by the revenue against the order of the Commissioner of Income Tax (Appeals)-26, Kolkata [hereinafter referred to as the ‘CIT(A)’] in appeal no.CIT(Appeals)Kolkata-26/10031/2018-19 dated 30.07.2025 and C.O No.6/Kol/2026 is a cross-objection filed by the assessee against the revenue’s appeal in ITA 3010/Kol/2025.

2 ITANo.3010/Kol/2025 & CO 6/Kol/2026 2. Shri Soumitra Choudhary & Nandini Sureka, Advocate represented on behalf of the assessee and Sri Manas Mondal, Sr. DR represented on behalf of the revenue.

The appeal filed by the revenue with a delay of 69 days. The revenue has filed an affidavit for condonation of delay. The reasons given in the affidavit are plausible and valid. Consequently, the delay in filing the appeal is hereby condoned and we proceed to dispose off the appeal on merits. 4. At the time of hearing, it was submitted by the ld. AR that the appeal filed by the revenue is below the monetary limit as per Circular No.9/2024 dated 17.09.2024 issued by CBDT. The ld. AR has submitted before us a chart showing the calculation of Rs.17,16,000/- as tax effect involved, which reads as under:

3 ITANo.3010/Kol/2025 & CO 6/Kol/2026

Per contra, the ld. DR opposed the submission of the assessee to submit that the case of the assessee falls within the exception clause in para 3.1(h) of the said circular.

We have considered the rival submissions. A perusal of the facts of the present case clearly shows that the tax effect involved in this appeal is Rs.17,16,000/- which is below the monetary limit as prescribed by CBDT Circular dated 17.09.24. The revenue

4 ITANo.3010/Kol/2025 & CO 6/Kol/2026 authorities have not clearly suggested the exception clause in para 3.1(h) of the said circular. The Hon’ble Jurisdictional High Court in the case of PCIT vs. Hilton Commodities Pvt. Ltd. in ITA No.GA/1 2026, GA/2/2026 dated 21.04.2026 has held as under: “We have perused the application, the assessment order, appellate order of the learned Commissioner of Income Tax and the order of the learned Tribunal dated 24.02.2025 for the Assessment Year 2009- 2010. We do not find any reason to entertain this appeal where the appellant has not clearly suggested which exceptional clause as read in para 3.1(h) as per CBDT Circular No.5 of 2024 dated 15th March, 2024 is applicable in the present appeal. As such, this appeal and the connected application being GA/2/2026 are dismissed as the tax effect in this matter is below Rs. 2 crores.”

Considering the above, the appeal of the revenue is dismissed as the tax effect involved in this appeal. Cross-objection is also dismissed as not pressed. 8. In the result, the appeal of the revenue and cross-objection of the assessee are dismissed. Order pronounced in the open court on 05/05/2026.

Sd/- (GEORGE MATHAN) न्यधनयक सदस्य / JUDICIAL MEMBER Dated 05/05/2026 RS

5 ITANo.3010/Kol/2025 & CO 6/Kol/2026 आदेश की प्रनतलिपि अग्रेपर्त/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant- प्रत्यर्थी / The Respondent- 2. 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file.

सत्यापपत प्रतत //True Copy// आदेशधिुसधर/ BY ORDER,

(Assistant Registrar) Income Tax Appellate Tribunal, Kolkata

DCIT, CC-2(3), KOLKATA vs. NEWLEAF REALTORS PRIVATE LIMITED, KOLKATA

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