PRINCIPAL COMMISSIONER OF INCOME TAX 2 KOLKATA vs. M/S SUBHAVANI PROJECTS PVT LTD

PDF · subscribers
ITA/31/2023HC CalcuttaWBCHCO004236202302 September 2025Bench: THE HON'BLE THE CHIEF JUSTICE T.S SIVAGNANAM,HON'BLE JUSTICE CHAITALI CHATTERJEE (DAS)2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal stands disposed of on the ground of low tax effect. It was noted that the tax effect in the appeal is Rs. 1,10,32,251/-, which is below the threshold limit. Consequently, the revenue cannot pursue the matter further in light of Circular No. 9 of 2024 issued by the Central Board of Direct Taxes. The Court explicitly stated that the substantial questions of law, which had been admitted by an order dated September 26, 2023, were left open. The ratio decidendi is that appeals with a tax effect below the prescribed limit, as per CBDT circulars, are not to be pursued by the revenue.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-2, Kolkata (the revenue) under Section 260A of the Income Tax Act, 1961, against an order dated April 5, 2023, passed by the Income Tax Appellate Tribunal (ITAT), "B" Bench, Kolkata. The ITAT's order pertains to the assessment year 2012-13 and was made in ITA No. 2609/Kol/2018. The assessee is M/s. Subhavani Projects Private Limited. The tax effect in the present appeal is Rs. 1,10,32,251/-. The High Court heard learned advocates for both parties.

What were the issues?

1. Whether the appeal filed by the revenue is maintainable given the tax effect below the prescribed threshold limit, as per Circular No. 9 of 2024 issued by the Central Board of Direct Taxes. Assessee's Contention: The revenue cannot pursue the matter further due to the low tax effect, which is below the threshold limit stipulated in Circular No. 9 of 2024. Therefore, the appeal should be disposed of on this ground. Revenue's Contention: No specific contention is recorded in the judgment regarding the tax effect or the maintainability of the appeal on this ground. The judgment notes that substantial questions of law were admitted by a prior order dated September 26, 2023, but does not detail these questions or the revenue's arguments concerning them.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

O-1 IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (INCOME TAX) ORIGINAL SIDE

ITA/31/2023

PRINCIPAL COMMISSIONER OF INCOME TAX-2, KOLKATA VS M/s. SUBHAVANI PROJECTS PRIVATE LIMITED

BEFORE : THE HON'BLE THE CHIEF JUSTICE T.S SIVAGNANAM -A N D- HON'BLE JUSTICE CHAITALI CHATTERJEE (DAS) DATE : 2nd September, 2025

Mr. Soumen Bhattacharjee, Adv. Mr. Ankan Das, Adv. Ms. Shradhya Ghosh, Adv. …for appellant Mr. Rajesh Kumar Mishra, Adv. Mr. Sutirtha Das, Adv. …for respondent

The Court : This appeal has been filed by the revenue under section 260A of the Income tax Act, 1961 against the order dated 5.4.2023 passed by the Income Tax Appellate Tribunal, “B” Bench, Kolkata in ITA No. 2609/Kol/2018 for the assessment year 2012-13. We have heard learned Advocates appearing for the parties. It is not in dispute that the tax effect in this appeal is Rs. 1,10,32,251/-, which is below the threshold limit. If that be so, the revenue cannot pursue the matter further on account of the Circular issued by the Central Board of Direct

Tax being Circular No.9 of 2024. Therefore, the appeal stands disposed of on the ground of low tax effect. The substantial questions of law admitted by order dated 26th September, 2023 are left open.

(T.S. SIVAGNANAM, CJ. )

(CHAITALI CHATTERJEE (DAS), J.)

SN/PKD. AR[CR]

Recent GST High Court judgments

Search GST case law →