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

ITSSA 71/KOL/2024Status: DisposedITAT Kolkata22 October 2024AY 2014-154 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 are not maintainable. The primary reason for this decision is the tax effect of the relief granted by the Commissioner of Income Tax (Appeals), which was less than Rs. 60,00,000/-. This fact, coupled with the absence of any qualifying exceptions as per CBDT Instruction No. 9 of 2024, rendered the appeals unsustainable. The Tribunal dismissed the appeals for want of tax effect. The ratio decidendi is that appeals filed by the Revenue, where the tax effect is below the threshold stipulated in the relevant CBDT Instruction and no exceptions apply, are liable to be dismissed as not maintainable. The Tribunal granted the Revenue liberty to file a Miscellaneous Application for revival of these appeals if, upon re-verification, the tax effect is found to be higher or if the case falls within the exceptions of the Instruction, provided such application is filed within the statutory time limit.

What were the facts?

The appeals were filed by the Revenue against the orders of the Commissioner of Income Tax (Appeals), Kolkata-20, for assessment years 2010-11, 2011-12, 2014-15, and 2012-13. The assessee is Unitech Paper Mills Pvt. Limited. The appeals challenged the relief granted by the first appellate authority. The tax effect arising from the relief provided by the CIT(Appeals) was stated to be less than Rs. 60,00,000/-. The Revenue's appeals were filed despite CBDT Instruction No. 9 of 2024, issued on September 17, 2024, which directs subordinate authorities not to challenge orders before the Tribunal if the tax effect is below Rs. 60,00,000/-, 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 of the relief granted by the CIT(Appeals) is less than Rs. 60,00,000/-, and do not fall within the exceptions provided in CBDT Instruction No. 9 of 2024? (Question of law and fact, turning on the interpretation and applicability of CBDT Instruction No. 9 of 2024). Assessee's Contention: The assessee did not explicitly record any contentions. However, the Tribunal's decision implies reliance on the CBDT Instruction. Revenue's Contention: The Revenue filed the appeals, but no specific arguments or reliance on any authorities, circulars, or precedents were recorded in the judgment for the Revenue's side, other than the act of filing the appeals.

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. 41, 70, 71/KOL/2024 are preferred by the Revenue against the orders of ld. Commissioner of Income Tax (Appeals), Kolkata-20 dated 24th January, 2024 for assessment years 2010-11, 2011-12 & 2014-15 respectively. The appeal being ITA No. 1316/KOL/2024 is preferred by the Revenue against the order of ld. Commissioner of Income Tax (Appeals), Kolkata-20 dated 22nd February, 2024 for assessment year 2012-13.

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.

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.

In the result, all 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) Unitech Paper Mills Pvt. Limited, 53A, Rafi Ahmed Kidwai Road, 3rd floor, Kolkata-700016

IT(SS)A No. 41/KOL/2024 (A.Y. 2010-11) IT(SS)A No. 70/KOL/2024 (A.Y. 2011-12) IT(SS)A No. 71/KOL/2024 (A.Y. 2014-15) ITA No. 1316/KOL/2024 (A.Y. 2012-13) Unitech Paper Mills Pvt. Limited (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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