DCIT CC-1(4), KOLKATA, KOLKATA vs. PRIMARC RETAIL STORES PVT LTD, KOLKATA

ITSSA 61/KOL/2024Status: DisposedITAT Kolkata22 October 2024AY 2018-193 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 filed by the Revenue was contrary to the policy decision of the Department as laid down in CBDT Circular No. 9/2024. The circular revised the monetary limit for filing appeals before the Tribunal to Rs. 60,00,000/-. In the present case, the tax effect was found to be less than this revised limit. Therefore, the Tribunal dismissed the appeal in limine. The Tribunal also noted that if the Revenue later finds the tax effect to be more than Rs. 60 lakhs, or if the appeal is otherwise maintainable despite a low tax effect, it is at liberty to move the Tribunal for recalling this order. No other issue was decided.

What were the facts?

The Revenue (DCIT, CC-1(4), Kolkata) filed an appeal before the Income Tax Appellate Tribunal (ITAT), Kolkata Bench 'B', against an order passed by the Ld. Commissioner of Income Tax (Appeals)-20, Kolkata, dated 03.01.2024, for the assessment year 2018-19. The appeal was filed on 28.05.2024 and was noted to be barred by limitation by 87 days. The Tribunal condoned the delay after finding the reasons to be bonafide. The assessee is Primarc Retail Stores Pvt. Ltd.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the Tribunal, considering the monetary limits for filing appeals as revised by the CBDT? The Revenue contended that the appeal was filed against the impugned order of the Ld. CIT(A). The Assessee, through its counsel, submitted that the CBDT had issued Circular No. 9/2024 dated 17.09.2024, which increased the monetary limits for filing appeals by the Department before the ITAT, High Courts, and Supreme Court. The Assessee pointed out that the tax effect in the present appeal was less than the revised monetary limit of Rs. 60,00,000/- for appeals before the Tribunal. The Revenue did not present any arguments against this submission.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH: KOLKATA

Before: Shri Sanjay Garg & Shri Rajesh Kumar]

आयकर अपील�य अ�धकरण, कोलकाता पीठ ‘बी’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH: KOLKATA �ी संजय गग�, �या�यक सद�य एवं �ी राजेश कुमार, लेखा सद�य के सम� [Before Shri Sanjay Garg, Judicial Member & Shri Rajesh Kumar, Accountant Member] I.T.(SS)A. No. 61/Kol/2024 Assessment Year: 2018-19 DCIT,CC-1(4), Kolkata Vs. Primarc Retail Stores Pvt. Ltd.

(PAN: AADCP 3619 G) Appellant / (अपीलाथ�) Respondent / (��यथ�)

Date of Hearing / सुनवाई 09.10.2024 क� �त�थ Date of Pronouncement / 22.10.2024 आदेश उ�घोषणा क� �त�थ For the Appellant / Shri Manish Tiwari, FCA �नधा�रती क� ओर से For the Respondent / Shri Prakash Nath Banrnwal, CITDR राज�व क� ओर से

ORDER/ आदेश Per Shri Rajesh Kumar, AM: This is an appeal preferred by the revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-20, Kolkata [hereinafter referred to as ‘ Ld. CIT(A)’] dated 03.01.2024 for the assessment year 2018-19. 2. At the outset we note that the appeal is barred by limitation by 87 days. After hearing both the sides and perusing the facts on records we find that the delay is for bonafides reasons and is accordingly condoned.

2 IT(SS)A No. 61/Kol/2024 AY: 2018-19 Primarc Retail Sotres Pvt. Ltd. 3. At the outset, the Ld. Counsel for the assessee submitted that the CBDT has issued a Circular No. 9/2024 dated 17.09.2024, whereby the monetary limits for filing of appeal by the Department before Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court have been increased as a measure for reducing Litigation. The revised monetary limits laid down in para-2 of this Circular are as follows:

Before Appellate Tribunal Rs. 60,00,000/- 2. Before High Court Rs. 2,00,00,000/- 3. Before Supreme Court Rs. 5,00,00,000/-

In the present case, the tax effect by the revenue is less than Rs.60,00,000/-. We note that this appeal had been filed by the revenue on 28.05.2024 and since the tax effect is within the monetary limit for filing appeals before Tribunal, in view of the Circular of CBDT (supra) at the first place, Revenue should not have preferred this appeal. In view of the above, we hold that the appeal filed by the Department, against the impugned order of the Ld. CIT(A), is contrary to the policy decision of the Department and as such the appeal filed by the Department is dismissed in limine.

As a matter of caution, we observe that if the Revenue finds at a later point of time that the tax effect in the appeal is more than Rs.60 lakhs or despite low tax effect, the appeal of the revenue is maintainable, the revenue is at liberty to move this Tribunal for recalling of this order. 6. In the result, appeal of the revenue is dismissed.

Order is pronounced in the open court on 22nd October, 2024

Sd/- Sd/- (Sanjay Garg /संजय गग�) (Rajesh Kumar / राजेश कुमार) Judicial Member /�या�यक सद�य Accountant Member / लेखा सद�य Dated: 22nd October, 2024 SM, Sr. PS

3 IT(SS)A No. 61/Kol/2024 AY: 2018-19 Primarc Retail Sotres Pvt. Ltd.

Copy of the order forwarded to: 1. Appellant- DCIT, Circle-1(4), Kolkata 2. Respondent – Primarc Retail Stores Pvt. Ltd. , 18, Poddar Court, Rabindra Sarani, Lal Bazar, Kolkata-700001 3. Ld. CIT(A)-20, Kolkata 4. PCIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order

Assistant Registrar ITAT, Kolkata Benches, Kolkata

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