COMMISSIONER OF INCOME TAX, KOLKATA - IV, KOLKATA vs. KANORIA CHEMICALS & INDS. LTD.
What did the High Court hold?
The High Court recorded the submission made by the revenue's counsel, on instruction from the department, that the appeal could not be pursued due to low tax effect. Based on this submission, the High 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 applications were also dismissed. The ratio of this decision is that an appeal can 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 revenue, Commissioner of Income Tax, Kolkata – IV, Kolkata, against an order passed by the Income Tax Appellate Tribunal, ‘B’ Bench, Calcutta. The assessee is Kanoria Chemicals & Inds. Ltd. The appeal was filed under Section 260A of the Income Tax Act. The revenue's counsel, on instruction from the department, submitted that the appeal could not be pursued due to a low tax effect. The High Court heard both the revenue's counsel and the assessee's senior counsel.
What were the issues?
1. Whether the appeal filed by the revenue under Section 260A of the Income Tax Act should be dismissed on the ground of low tax effect. Assessee's Contention: Not recorded. Revenue's Contention: The revenue, on instruction from the department, submitted that the appeal could not be pursued due to low tax effect. The revenue relied on the department's instruction to withdraw or not pursue the appeal.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
OD-6 ORDER SHEET IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (INCOME TAX) ORIGINAL SIDE ITA/276/2009 COMMISSIONER OF INCOME TAX, KOLKATA – IV, KOLKATA VS. KANORIA CHEMICALS & INDS. 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. P.K. Bhowmik, Advocate … for the appellant Mr. J.P. Khaitan, Sr. Advocate Ms. Swapna Das, Advocate Mr. Sanjay Bhowmik, Advocate Mr. Siddhart Das, Advocate … for the respondent 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, ‘B’ Bench, Calcutta. We have heard Mr. P.K. Bhowmik, learned standing counsel appearing for the appellant/revenue and Mr. J.P. Khaitan, learned senior counsel appearing for the respondent/assessee.
2 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. 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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