PRINCIPAL COMMISSIOENR OF INCOME TAX-I vs. ASHOK AGARWAL

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ITA/55/2021HC RajasthanRJHC02040234202124 August 2023Bench: AUGUSTINE GEORGE MASIH,SAMEER JAIN2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court, upon hearing both learned counsel for the appellant (Revenue) and the respondent (assessee), noted their joint submission regarding the tax effect. Both parties agreed that the tax effect involved in the appeal was significantly below the monetary limit set by Circular No. 17/2019, dated August 8, 2019, for filing appeals by the income tax department. Consequently, the Court found the appeal to be not maintainable on this ground. The Court dismissed the appeal (ITA/55/2021) solely on the basis that the tax effect was below the prescribed monetary limit. No decision was made on the merits of the substantive tax dispute.

What were the facts?

The appeal, ITA/55/2021, was filed by the Principal Commissioner of Income Tax-3, Kolkata (the Revenue) against the assessee, Appejay House (P) Ltd. The assessment year in question is 2008-09. The appeal challenges an order passed by the Commissioner of Income Tax (Appeals), Central-I, Kolkata, dated June 15, 2012. Both parties jointly brought to the court's attention that the tax effect involved in the present appeal is below the monetary limit stipulated by Circular No. 17/2019. This circular sets the threshold for filing appeals by the income tax department.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable given that the tax effect is below the monetary limit prescribed by Circular No. 17/2019? (Question of law) Assessee's contention: The assessee, through its counsel, jointly with the Revenue, brought to the court's attention that the tax effect is below the monetary limit fixed by Circular No. 17/2019. This implies that the appeal should not have been filed or pursued. Revenue's contention: The Revenue, through its counsel, also jointly with the assessee, acknowledged that the tax effect involved in the appeal is below the monetary limit fixed by Circular No. 17/2019. This admission leads to the conclusion that the appeal is not maintainable based on the department's own circular.

Which sections of the Income-tax Act were involved?

None

AI-generated summary — verify with the full judgment below

O-94

ITA/55/2021

IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (INCOME TAX) ORIGINAL SIDE

PRINCIPAL COMMISSIONER OF INCOME TAX-3, KOLKATA

-VERSUS- APPEJAY HOUSE (P) LTD. (PAN AACCA1959K).

BEFORE : THE HON’BLE JUSTICE SURYA PRAKASH KESARWANI

AND THE HON’BLE JUSTICE AJAY KUMAR GUPTA Date : 2nd July, 2024.

Appearance: Mr. Aryak Dutt, Adv. … for the appellant. Mr. Avra Mazumder, Adv. ..for the respondent.

1.

Heard Sri Aryak Dutt, learned standing counsel for the appellant and Sri Avra Mazumder, learned advocate appearing for the respondent/assessee. 2. Both the learned counsel for the parties jointly has drawn attention of this Court that the tax effect involved in the present appeal is below the monetary limit fixed by Circular No.17/2019. They have jointly referred to the order dated 15.06.2012 passed by the Commissioner of Income Tax (Appeals), Central-I, Kolkata relating to the Assessment Year 2008-09 which appears at page 18 of the stay application.

2 3. In view of the aforesaid, the appeal (ITA/55/2021) is dismissed as the tax effect involved is much below the monetary limit fixed for filing of appeal by the income tax department by Circular No.17/2019 dated 08.08.2019.

(SURYA PRAKASH KESARWANI, J.)

(AJAY KUMAR GUPTA, J.)

As.

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