COMMISSIONER OF INCOME TAX (CENTRAL)--I, KOLKATA vs. MESSERS HOOGHLY MILLS COMPANY LIMITED
What did the High Court hold?
The High Court recorded the submission made by the learned standing counsel for the revenue that the appeal could not be pursued due to low tax effect. Based on this submission, the Court dismissed the appeal on the ground of low tax effect. Consequently, the substantial questions of law, which were raised in the appeal, were left open and not decided on merits. Any connected application was also dismissed. The principle that can be cited from this judgment is that an appeal may be dismissed on the ground of low tax effect if the revenue so instructs, without deciding the substantial questions of law.
What were the facts?
The appeal was filed by the Commissioner of Income Tax (Central – 1), Kolkata (the revenue) under Section 260A of the Income Tax Act, 1961, against an order passed by the Income Tax Appellate Tribunal, ‘A’ Bench, Kolkata. The assessee is Messers Hooghly Mills Company Limited. The appeal was heard by the High Court at Calcutta, Original Side. The learned standing counsel for the revenue, on instructions from the department, submitted that the appeal could not be pursued due to a low tax effect.
What were the issues?
1. Whether the appeal filed by the revenue under Section 260A of the Income Tax Act, 1961, can be pursued on account of low tax effect? (Question of law) The revenue argued that the appeal could not be pursued due to low tax effect. The judgment does not record any arguments from the assessee.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
OD-4 ORDER SHEET IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (INCOME TAX) ORIGINAL SIDE ITA/254/2009 IA No. GA/1/2009 (Old No. GA/2544/2009) COMMISSIONER OF INCOME TAX (CENTRAL – 1), KOLKATA VS. MESSERS HOOGHLY MILLS COMPANY LIMITED BEFORE: The Hon'ble JUSTICE T. S. SIVAGNANAM AND The Hon’ble JUSTICE HIRANMAY BHATTACHARYYA Date : December 16, 2021. [Via Video Conference] Appearance: Mr. Arunabha Ganguly, Advocate … 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, ‘A’ Bench, Kolkata. We have heard Mr. Arunabha Ganguly, learned standing counsel appearing for the appellant/revenue. The learned standing counsel appearing for the appellant/revenue on instruction from the department submitted that the appeal cannot be pursued by the revenue on account of low tax effect.
2 Recording such submission, the appeal is dismissed on the ground of low tax effect. Consequently, substantial questions of law which have been raised are left open. Connected application, if any, stands dismissed. (T. S. SIVAGNANAM, J.) (HIRANMAY BHATTACHARYYA, J.) RS/GH.
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