COMMISSIONER OF INCOME TAX, DURGAPUR vs. THE BISHNUPUR TOWN CO-OPRATIVE BANK LTD.
What did the High Court hold?
The High Court, recording the submission made by the learned standing counsel for the appellant/revenue that the appeal cannot be pursued due to low tax effect, dismissed the appeal on this ground. Consequently, the substantial questions of law that were raised in the appeal were left open and not decided on merits. The connected application, if any, was also dismissed. The principle derived is that appeals can be dismissed for low tax effect, even if substantial questions of law are involved, when the revenue itself withdraws from pursuing the matter on that basis.
What were the facts?
The appeal was filed by the Commissioner of Income Tax, Durgapur (the revenue) under Section 260A of the Income Tax Act, 1961, against an order passed by the Income Tax Appellate Tribunal, 'C' Bench, Kolkata. The assessee is The Bishnupur Town Cooperative Bank Ltd. The appeal pertains to assessment year(s) not specified in the judgment. The revenue's counsel, Mr. Tilak Mitra, on instruction from the department, submitted that the appeal could not be pursued due to a low tax effect. The High Court recorded this submission.
What were the issues?
1. Whether the appeal filed by the revenue under Section 260A of the Income Tax Act, 1961, can be pursued given the low tax effect? (Question of law) Assessee's Contention: Not recorded in the judgment. Revenue's Contention: The revenue, through its learned standing counsel, submitted on instruction that the appeal cannot be pursued on account of low tax effect.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
OD-5 ORDER SHEET IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (INCOME TAX) ORIGINAL SIDE ITA/261/2009 IA No. GA/1/2009 (Old No. GA/2562/2009) COMMISSIONER OF INCOME TAX,DURGAPUR VS. THE BISHNUPUR TOWN COOPERATIVE BANK LTD. BEFORE: The Hon'ble JUSTICE T. S. SIVAGNANAM AND The Hon’ble JUSTICE HIRANMAY BHATTACHARYYA Date : December 16, 2021. [Via Video Conference] Appearance: Mr. Tilak Mitra, 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, ‘C’ Bench, Kolkata. We have heard Mr. Tilak Mitra, 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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