COMMISSIONER OF INCOME TAX, KOL-IV vs. AT & S INDIA LTD.

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ITA/379/2009HC CalcuttaWBCHCO006166200923 July 2021Bench: HON'BLE JUSTICE RAJESH BINDAL, CHIEF JUSTICE (ACTING),HON'BLE JUSTICE ARIJIT BANERJEE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal did not decide the substantive issues of the appeal on merits. Instead, the appeal was disposed of based on a procedural ground. The appellant (Revenue) sought permission to withdraw the appeal, citing that the income tax involved was below the minimum limit prescribed for filing appeals in the High Court as per CBDT Circular No.17/2019. The Court granted this permission. The operative direction was to dispose of the present appeal, keeping open the question of law raised therein. This implies that the appeal was not decided on its merits, and the legal question remains unresolved for future consideration if a similar situation arises with a higher monetary threshold.

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Kolkata – IV, against an order dated July 24, 2009, passed by the Income Tax Appellate Tribunal, “A” Bench, Kolkata. The appeal pertains to assessment years 2002-03 and 2003-04 and involves the respondent, AT & S India Limited. The appellant's counsel stated that the amount of income tax involved in the appeal is less than ₹ 1 crore. This amount is below the minimum limit prescribed for filing appeals in the High Court, as per Circular No.17/2019 dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, Judicial Section.

What were the issues?

1. Whether the appeal is maintainable before the High Court given the amount of income tax involved is less than ₹ 1 crore, as per CBDT Circular No.17/2019? Assessee's Contention: The assessee (appellant in this case, the Revenue) argued that the amount of income tax involved is less than ₹ 1 crore, which falls below the threshold for filing appeals in the High Court as per the relevant CBDT circular. Therefore, the appeal should be permitted to be withdrawn. Revenue's Contention: The judgment does not record any specific contention from the revenue regarding the merits of the case or the question of law. Their argument is solely based on the procedural aspect of the monetary limit for appeals.

AI-generated summary — verify with the full judgment below

Serial No. OD – 13 HIGH COURT AT CALCUTTA (ORIGINAL SIDE) ITA/379/2009 (Through Video Conferencing) COMMISSIONER OF INCOME TAX, KOLKATA – IV ….Appellant(s) Through : Mr. Manbendra Bandopadhyay, Advocate V/s AT & S INDIA LIMITED . ….Respondent(s) Through : Mr. Somak Basu, Advocate. Coram: HON’BLE MR. RAJESH BINDAL, CHIEF JUSTICE (ACTING) HON’BLE MR. JUSTICE ARIJIT BANERJEE, JUDGE O R D E R 1. The present appeal has been filed impugning the order dated July 24, 2009 passed by the Income Tax Appellate Tribunal, “A” Bench, Kolkata in ITA Nos.1448 & 1449 (Kol) of 2008 for the assessment years 2002-03 and 2003-04. 2. Learned counsel for the appellant pointed out that the amount of income tax involved in the present appeal is less than ₹ 1 crore. The same being below the minimum limit prescribed for filing of appeals in the High Court vide Circular No.17/2019 F.No.279/Misc.142/2007-ITJ(Pt.) issued by the Government of India, Ministry of Finance, Department of Revenue,

2 Central Board of Direct Taxes, Judicial Section dated August 8, 2019, he may be permitted to withdraw the present appeal. 3. The present appeal is disposed of, however, keeping open the question of law raised therein. KOLKATA (ARIJIT BANERJEE) (RAJESH BINDAL) 23.07.2021 JUDGE CHIEF JUSTICE (ACTING) akg/S.Kumar

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