DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(2), KOLKATA, KOLKATA vs. RAGHUNATH PAPER MILLS PRIVATE LIMITED, KOLKATA

ITSSA 68/KOL/2024Status: DisposedITAT Kolkata22 October 2024AY 2010-113 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 appeals filed by the Revenue were not maintainable. The primary reasoning was based on CBDT Instruction No. 9 of 2024, which mandates that appeals should not be filed before the Tribunal if the tax effect resulting from the relief granted by the CIT(Appeals) is below Rs. 60,00,000/-, unless the case falls under specific exceptions. In this instance, the tax effect was found to be less than the stipulated amount, and the appeals did not fall within any of the exceptions. Therefore, the Tribunal dismissed both appeals for want of tax effect. The Tribunal also granted the Revenue liberty to file a Miscellaneous Application for revival of the appeals if, upon re-verification, the tax effect is found to be higher or if the case falls under the exceptions.

What were the facts?

The Revenue has filed these appeals against the orders of the Commissioner of Income Tax (Appeals) - Kolkata-20, dated January 22, 2024, for Assessment Years 2010-11 and 2012-13. The assessee is Raghunath Paper Mills Private Limited. The appeals were heard by the Income Tax Appellate Tribunal, 'A' Bench, Kolkata. The Tribunal noted that the tax effect arising from the relief granted by the first appellate authority was less than Rs. 60,00,000/-. This fact was considered in light of CBDT Instruction No. 9 of 2024, issued on September 17, 2024, which directs subordinate authorities not to challenge orders of the CIT(Appeals) before the Tribunal if the tax effect is below this threshold, unless specific exceptions apply.

What were the issues?

1. Whether the appeals filed by the Revenue are maintainable before the Tribunal, considering the tax effect arising from the relief granted by the CIT(Appeals) is less than Rs. 60,00,000/-, as per CBDT Instruction No. 9 of 2024. Assessee's Contention: The assessee did not explicitly present arguments on the merits of the case. However, the Tribunal's decision was based on the fact that the appeals were not maintainable due to the low tax effect. Revenue's Contention: The Revenue argued for the maintainability of the appeals. However, the Tribunal's order indicates that the Revenue's appeals were dismissed based on the CBDT instruction regarding tax effect, implying that the Revenue's arguments, if any, did not overcome this procedural bar.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, KOLKATA

Before: Shri Rajpal Yadav, Vice-(KZ) & Shri Rajesh Kumar

Per Bench:- These appeals being IT(SS)A Nos. 68 & 69/KOL/2024 are preferred by the Revenue against the orders of ld.

IT(SS)A No. 68/KOL/2024 (A.Y. 2010-11) IT(SS)A No. 69/KOL/2024 (A.Y. 2012-13) Raghunath Paper Mills Private Limited Commissioner of Income Tax (Appeals), Kolkata-20 dated 22nd January, 2024 for assessment years 2010-11 & 2012- 13 respectively.

With the assistance of ld. representatives, we have gone through the grounds of appeals 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 comes within exceptions provided in the Instruction. Therefore, these cases do not fall in any of the exceptions and, these appeals are not maintainable.

On due consideration of the above facts and circumstances, we dismiss these appeals 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 comes out that tax effect is more or this case falls in any of the exceptions provided in this Instruction. Then Revenue will be at liberty to file Miscellaneous Application for revival of these appeals. Such application should be filed within the time limit provided in the Act.

IT(SS)A No. 68/KOL/2024 (A.Y. 2010-11) IT(SS)A No. 69/KOL/2024 (A.Y. 2012-13) Raghunath Paper Mills Private Limited 4. In the result, both the appeals of the Revenue are dismissed. Order pronounced in the open Court on 22/10/2024. Sd/- Sd/- (Rajesh Kumar) (Rajpal Yadav) Accountant Member Vice-President (KZ) Kolkata, the 22nd day of October, 2024 Copies to :(1) Deputy Commissioner of Income Tax, Central Circle-1(2), Kolkata, Aayakar Bhawan Poorva, Room No. 310, 3rd Floor, 110, Shanti Pally, Kolkata-700107 (2) Raghunath Paper Mills Private Limited, 53A, Rafi Ahmed Kidwai Road, 3rd floor, Kolkata-700016

(3) Commissioner of Income Tax (Appeals), Kolkata-20; (4) CIT - (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.

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