COMMISSIONER OF INCOME TAX, CENTRAL-I, KOLKATA vs. M/S. COLOMA COMMERCIAL CO. LTD.
What did the High Court hold?
The High Court dismissed the appeal filed by the revenue on the ground of low tax effect. The Court noted that the tax effect was below the threshold limit stipulated by the CBDT Circular, which precluded the revenue from pursuing the appeal further. Consequently, the substantial question of law framed at the time of admission was left open and not decided on merits. No operative directions were issued regarding the ITAT's order or the assessee's claim of capital gain.
What were the facts?
This appeal, filed under Section 260A of the Income Tax Act, 1961, by the Commissioner of Income Tax, Central-1, Kolkata (the revenue), challenges an order dated 14.05.2010 passed by the Income Tax Appellate Tribunal (ITAT), "C" Bench, Kolkata. The ITAT's order pertains to the assessment year 2006-07 and relates to an assessee, M/s. Coloma Commercial Co. Ltd. The appeal was admitted on 22.12.2010, raising a substantial question of law concerning the ITAT's direction to the assessing officer to accept the assessee's claim of a capital gain of Rs. 69,56,024/-. The revenue appeared through its counsel, Ms. Smita Das Dey.
What were the issues?
1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law to direct the assessing officer to accept the claim of the assessee that a gain of Rs. 69,56,024/- was a capital gain, by setting aside all other orders passed by the assessing authorities? (Question of law) Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The revenue, through its counsel, argued that the tax effect in the instant appeal was far below the threshold limit fixed by the CBDT Circular. Therefore, the revenue contended that it could not pursue the appeal further.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
OD – 11 IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (INCOME TAX) ORIGINAL SIDE ITA/16/2011 COMMISSIONER OF INCOME TAX, CENTRAL-1, KOLKATA Vs M/S. COLOMA COMMERCIAL CO. LTD. BEFORE : THE HON’BLE JUSTICE T.S. SIVAGNANAM And THE HON’BLE JUSTICE HIRANMAY BHATTACHARYYA Dated : NOVEMBER 10, 2022. Appearance: Ms. Smita Das De, Adv. …for appellant The Court :- This appeal filed under Section 260A of the Income Tax Act, 1961 is directed against the order dated 14.05.2010 passed by the Income Tax Appellate Tribunal “C” Bench Kolkata in I.T.A. No. 585/Kol/2009 for the assessment year 2006- 07. The appeal was admitted on the 22.12.2010 on the following substantial questions of law : i) Whether on the facts and in the circumstances of the case the Tribunal was justified in law to direct the assessing officer to accept the claim of the assessee that gain of Rs.69,56,024/- was a Capital gain by setting aside all other Orders passed by the assessing authorities ? We have heard Ms. Smita Das Dey, learned Advocate for the appellant/revenue. As could be seen from the calculation of tax vide assessment order dated 29th August, 2008 that the tax effect in the instant appeal is far below the threshold limit fixed by the C.B.D.T. Circular.
2 In such circumstances the revenue cannot pursue the appeal further. For the above reasons, the appeal stands dismissed on the ground of low tax effect. Consequently, the substantial question of law is left open. Paper book is kept on record. (T.S. SIVAGNANAM, J.)
(HIRANMAY BHATTACHARYYA, J.) Pkd/GH
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