COMMISSIONER OF INCOME TAX, KOLKATA-XVIII, KOL vs. BALAGERIA CENTRAL CO-OPERATIVE BANK LTD.

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ITA/152/2011HC CalcuttaWBCHCO003105201117 January 2022Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the revenue under Section 260A of the Income Tax Act, 1961. The dismissal was based on the submission made by the revenue's learned standing counsel that the appeal could not be prosecuted due to a low tax effect. The Court recorded this submission and consequently dismissed the appeal on this ground. As a result of the dismissal on the preliminary ground of low tax effect, the substantial questions of law that were raised in the appeal were left open and were not decided on merits. The application for stay filed by the revenue was also dismissed as a consequence. The ratio decidendi is that an appeal can be withdrawn or not pressed by the revenue on grounds of low tax effect, leading to its dismissal without adjudication of the substantial questions of law.

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Kolkata-XVIII (the revenue) under Section 260A of the Income Tax Act, 1961, against an order passed by the Income Tax Appellate Tribunal, Kolkata. The appeal concerned Balageria Central Cooperative Bank Ltd. (the assessee). The revenue's learned standing counsel informed the Court that the appeal could not be prosecuted due to a low tax effect. Consequently, the appeal was dismissed on this ground. The substantial questions of law raised in the appeal were left open. An application for stay was also dismissed.

What were the issues?

1. Whether the appeal filed by the revenue under Section 260A of the Income Tax Act, 1961, can be prosecuted given the low tax effect. (Question of law) Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The appeal was dismissed based on the revenue's submission. Revenue's Contention: The revenue's learned standing counsel submitted that the appeal cannot be prosecuted on the ground of low tax effect. The judgment does not specify any authorities, circulars, or precedents relied upon by the revenue for this submission.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

OD-9 IN THE HIGH COURT AT CALCUTTA Special Jurisdiction (Income Tax) ORIGINAL SIDE

ITA 152 of 2011 IA No. GA 2 of 2011 (OLD No.GA 1907 of 2011)

COMMISSIONER OF INCOME TAX, KOLKATA-XVIII, KOLKATA VERSUS BALAGERIA CENTRAL COOPERATIVE BANK LTD.

BEFORE: The Hon’ble JUSTICE T. S. SIVAGNANAM AND The Hon’ble JUSTICE HIRANMAY BHATTACHARYYA Date : 17th January, 2022. Appearance: Mr. Arunava Ganguly, Adv . …for the appellant.

The Court : This appeal filed by the revenue under Section 260A of the Income Tax Act is directed against the order passed by the Income Tax Appellate Tribunal, Kolkata. The learned standing counsel appearing for the appellant/revenue has given instructions to the effect that this appeal cannot be prosecuted by the appellant/revenue on the ground of low tax effect. Recording the said submission, the appeal stands dismissed on the ground of low tax effect. Consequently, substantial questions of law which have been raised are left open. The application being IA No. GA 2 of 2011 (OLD No.GA 1907 of 2011) for stay also stands dismissed.

(T. S. SIVAGNANAM, J.)

(HIRANMAY BHATTACHARYYA, J.) s.pal/pkd

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