COMMISSIONER OF INCOME TAX, KOLKATA-IV vs. M/S. PHILIPS CARBON BLACK LTD.

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ITA/131/2010HC CalcuttaWBCHCO002684201016 September 2022Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE SUPRATIM BHATTACHARYA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court noted that the tax effect involved in the appeal was significantly less than the threshold limit fixed by the CBDT circular. Consequently, the revenue was not permitted to pursue the appeal on this ground. The appeal was disposed of on the basis of low tax effect, and the substantial question of law admitted was left open. No finding was given on the merits of the substantial question of law itself, nor was any specific reasoning provided by the High Court regarding the ITAT's deletion. The operative direction was to dispose of the appeal due to low tax effect.

What were the facts?

This appeal by the revenue, Commissioner of Income Tax, Kolkata, is against an order dated January 22, 2010, passed by the Income Tax Appellate Tribunal (ITAT), Kolkata, for the assessment year 2002-03. The ITAT had deleted an addition of Rs. 2,40,00,000/-. The appeal was admitted by the High Court on a substantial question of law concerning the justification for this deletion, specifically in the absence of evidence of actual service rendered by R.P.G. Enterprise Ltd. The parties involved are the revenue (appellant) and M/s. Philips Carbon Black Ltd. (respondent/assessee).

What were the issues?

1. Whether, on the facts and circumstances of the case, the Income Tax Appellate Tribunal is justified in law in deleting the addition of Rs. 2,40,00,000/- in the absence of any evidence of rendering of actual service by R.P.G. Enterprise Ltd.? Assessee's Contention: Not recorded in the judgment. Revenue's Contention: The revenue argued that the ITAT was not justified in deleting the addition of Rs. 2,40,00,000/- without evidence of actual service rendered by R.P.G. Enterprise Ltd. The appeal hinges on this point, framed as a question of law and mixed fact and law, concerning the deletion of the addition made by the Assessing Officer.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

O-118 ITA/131/2010 IN THE HIGH COURT AT CALCUTTA Special Jurisdiction (Income Tax) ORIGINAL SIDE COMMISSIONER OF INCOME TAX, KOLKATA, KOLKATA-IV -Versus- M/S. PHILIPS CARBON BLACK LTD. Appearance : Ms. Smita Das De, Adv. . . . for the appellant. Mr. J. P. Khaitan, Sr. Adv. Mr. Agnibesh Sengupta, Adv. Mr. A. K. Dey, Adv. ...for the respondent. BEFORE: The Hon’ble JUSTICE T.S. SIVAGNANAM -And- The Hon’ble JUSTICE SUPRATIM BHATTACHARYA Date : 16th September, 2022. The Court : This appeal filed by the revenue under Section 260A of the Income Tax Act, is directed against the order dated 22nd January, 2010 passed by the Income Tax Appellate Tribunal, “B” Bench, Kolkata (the Tribunal) in ITA No.421/Kol/2009 for the assessment year 2002-03. The appeal was admitted on the following substantial question of law:

2 (i) Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal is justified in law in deleting the addition of Rs.2,40,00,000/- in absence of any evidence of rendering of actual service by R.P.G. Enterprise Ltd. ?” We have heard Ms. Smita Das De, learned standing counsel for the appellant/revenue and Mr. J.P. Khaitan, learned senior counsel assisted by Mr. Agnibesh Sengupta and Mr. A. K. Dey, learned advocates for the respondent/assessee. From the substantial question of law which has been admitted it is seen that the tax effect involved in this appeal is much less than the threshold limit fixed by the Circular issued by the CBDT. Therefore, the revenue cannot pursue this appeal. Accordingly, the appeal (ITA/131/2010) stands disposed of on the ground of low tax effect and the substantial question of law is left open. (T.S. SIVAGNANAM, J.) (SUPRATIM BHATTACHARYA, J.) S.Das/As.

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