ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 4(1), KOLKATA, INCOME TAX KOLKATA vs. VIARRA ENTERTAIMENT PRIVATE LIMITED, DELHI

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ITSSA 125/KOL/2024Status: DisposedITAT Kolkata15 January 20252 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 dismissed the appeal filed by the Revenue. The primary reason for dismissal was the low tax effect, which was less than Rs. 60,00,000/-. The Tribunal referred to CBDT Instruction No. 9 of 2024, which directs subordinate authorities not to challenge orders of the CIT(A) before the Tribunal if the tax effect of the relief granted is below this threshold, unless specific exceptions apply. The Revenue's representative failed to demonstrate that the case fell under any of these exceptions. The Tribunal noted that if, upon re-verification by the Assessing Officer, it is found that the tax effect exceeds the limit or the case falls under an exception, the Revenue would be at liberty to file a Miscellaneous Application for the revival of the appeal within the prescribed time limits. No other issue was decided.

What were the facts?

This appeal was filed by the Revenue against the order of the Commissioner of Income-tax (Appeals) dated June 6, 2024, for the Assessment Year 2017-18. The assessee is Viarra Entertainment Private Limited, and the respondent is the ACIT, Central Circle 4(1). The appeal was heard on January 1, 2025, and pronounced on January 15, 2025. The material fact is that the tax effect of the relief granted by the first appellate authority was less than Rs. 60,00,000/-. The Revenue did not demonstrate that the case fell within any exceptions provided in CBDT Instruction No. 9 of 2024.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the Tribunal, considering the tax effect of the relief granted by the Ld. CIT(A) is less than Rs. 60,00,000/-, as per CBDT Instruction No. 9 of 2024. Assessee's Contention: The assessee did not make any specific arguments as the appeal was dismissed on the grounds of low tax effect. The appeal was filed by the Revenue. Revenue's Contention: The Revenue's representative (DR) did not demonstrate that the present case falls within any of the exceptions provided in CBDT Instruction No. 9 of 2024, which specifies conditions for challenging orders of the Ld. CIT(A) before the Tribunal based on tax effect.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, KOLKATA

Before: SHRI RAJESH KUMAR, AM & SHRI PRADIP KUMAR CHOUBEY, JM

For Appellant: Shri Soumitra Choudhury, AR
For Respondent: Shri Sanjay Mukherjee, DR
Hearing: 01.01.2025Pronounced: 15.01.2025

Per Rajesh Kumar, AM:

This is an appeal preferred by the Revenue against the order of the Commissioner of Income-tax (Appeals), Kolkata-27 (hereinafter referred to as the “Ld. CIT(A)”] dated 06.06.2024 for the AY 2017-18.

2.

With the assistance of ld. DR and ld AR, we have gone through the grounds raised by the Revenue. It is pertinent to note that the tax effect by virtue of relief given by the first appellate authority is less than Rs.60,00,000/-. As per CBDT Instruction bearing No. 9 of 2024 issued on 17th September, 2024, CBDT has directed its subordinate authorities not to challenge the order of ld. CIT(Appeals) before Tribunal if tax effect by virtue of relief given by the ld. CIT(Appeals) is less than Rs.60,00,000/-. Such order could only be challenged if it

3.

On due consideration of the above facts and circumstances, we dismiss this appeal of the Revenue for want of tax effect. However, in case on re-verification of the facts at the end of the Assessing Officer, it emerges that the tax effect is more than the limit for filing the appeal or this case falls in any of the exceptions provided in the instruction, then the Revenue will be at liberty to file a Miscellaneous Application for revival of this appeal. Such application should be filed within the time limit provided in the Act.

4.

In the result, all the appeal of the Revenue is dismissed.

Order pronounced in the open court on 15.01.2025.

Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated:15.01.2025 Sudip Sarkar, Sr.PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT DR, ITAT, 4. 5. Guard file. BY ORDER, True Copy//

Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata

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