DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(2), KOLKATA, KOLKATA vs. BHANU MERCHANTS PRIVATE LIMITED, KOLKATA

ITSSA 73/KOL/2024Status: DisposedITAT Kolkata22 October 2024AY 2012-133 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 due to insufficient tax effect. The primary reasoning was based on CBDT Instruction No. 9 of 2024, which sets a monetary threshold of Rs. 60,00,000/- for challenging orders of the CIT(Appeals) before the Tribunal. Since the tax effect in these appeals was below this threshold and the cases did not fall under any of the exceptions mentioned in the Instruction, the Tribunal found no grounds to entertain the appeals. The ratio decidendi is that appeals filed by the Revenue that do not meet the minimum tax effect criteria stipulated by CBDT instructions are liable to be dismissed for want of jurisdiction. The operative direction was to dismiss all the appeals of the Revenue. The Tribunal also granted liberty to the Revenue to file a Miscellaneous Application for revival of these appeals if, upon re-verification, it is found that the tax effect is more than Rs. 60,00,000/- or if the case falls within any of the exceptions, provided such application is filed within the time limit prescribed by the Act.

What were the facts?

The Revenue, represented by the Deputy Commissioner of Income Tax, Central Circle-1(2), Kolkata, filed three appeals before the Income Tax Appellate Tribunal (ITAT), Kolkata Bench. These appeals were against the orders of the Commissioner of Income Tax (Appeals)-20, dated January 16, 2024, for assessment years 2010-11 and 2011-12 (IT(SS)A Nos. 72 & 73/KOL/2024), and dated February 12, 2024, for assessment year 2009-10 (ITA No. 1280/KOL/2024). The assessee in these appeals is Bhanu Merchants Private Limited. The appeals were heard on October 22, 2024, and the order was pronounced on the same day.

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 first appellate authority. The Revenue argued that the appeals were maintainable. However, the Tribunal noted that the tax effect of the relief granted by the ld. Commissioner of Income Tax (Appeals) was less than Rs. 60,00,000/-. The Tribunal referred to 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 Rs. 60,00,000/-, unless the case falls within specific exceptions. The Tribunal observed that these cases did not fall within any of the exceptions.

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

IT(SS)A No. 72/KOL/2024 (A.Y. 2010-11) IT(SS)A No. 73/KOL/2024 (A.Y. 2012-13) ITA No. 1280/KOL/2024 (A.Y. 2009-10) Bhanu Merchants Private Limited THE INCOME TAX APPELLATE TRIBUNAL, ‘A’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President (KZ) & Shri Rajesh Kumar, Accountant Member I.T.(SS)A. No. 72/KOL/2024 Assessment Year: 2010-11 & I.T.(SS)A. No. 73/KOL/2024 Assessment Year: 2012-13 & I.T.A. No. 1280/KOL/2024 Assessment Year: 2009-10 Deputy Commissioner of Income Tax,….……Appellant Central Circle-1(2), Kolkata, Aayakar Bhawan Poorva, Room No. 310, 3rd Floor, 110, Shanti Pally, Kolkata-700107 -Vs.- Bhanu Merchants Private Limited,………….Respondent 53A, Rafi Ahmed Kidwai Road, 3rd floor, Kolkata-700016 [PAN: AABCB0940Q] Appearances by: Shri Subhendu Datta, CIT (DR), appeared on behalf of the Revenue Shri Deepak Mundra, ACA & Shri Robin Maheshwari, ACA, appeared on behalf of the assessee Date of concluding the hearing: October 22, 2024 Date of pronouncing the order: October 22, 2024

IT(SS)A No. 72/KOL/2024 (A.Y. 2010-11) IT(SS)A No. 73/KOL/2024 (A.Y. 2012-13) ITA No. 1280/KOL/2024 (A.Y. 2009-10) Bhanu Merchants Private Limited O R D E R Per Bench:- These appeals being IT(SS)A Nos. 72 & 73/KOL/2024 are preferred by the Revenue against the orders of ld. Commissioner of Income Tax (Appeals), Kolkata-20 dated 16th January, 2024 for assessment years 2010-11 &, 2011-12 respectively. The appeal being ITA No. 1280/KOL/2024 is preferred by the Revenue against the order of ld. Commissioner of Income Tax (Appeals), Kolkata-20 dated 12th February, 2024 for assessment year 2009-10.

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 2

IT(SS)A No. 72/KOL/2024 (A.Y. 2010-11) IT(SS)A No. 73/KOL/2024 (A.Y. 2012-13) ITA No. 1280/KOL/2024 (A.Y. 2009-10) Bhanu Merchants Private Limited 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. 4. 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) Bhanu Merchants 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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