COMMISSIONER OF INCOME TAX, KOL-IV, KOLKATA vs. M/S. P.C. CHANDRA HOLDINGS PVT. LTD.
What did the High Court hold?
The High Court dismissed the appeal filed by the revenue on the ground of low tax effect, based on the submission made by the revenue's learned standing counsel. Consequently, the substantial questions of law, which were raised in the appeal, were left open and not decided on merits. The ratio decidendi is that an appeal can be withdrawn or dismissed if the tax effect is below a certain threshold, as per departmental instructions or policy, without adjudicating the substantial questions of law. The operative direction was the dismissal of the appeal.
What were the facts?
This is an appeal filed by the revenue, Commissioner of Income Tax, Kolkata-IV, Kolkata, under Section 260A of the Income Tax Act, 1961, against an order passed by the Income Tax Appellate Tribunal, Kolkata. The respondent is M/s. P.C. Chandra Holdings Pvt. Ltd. The appeal pertains to an assessment year not specified in the judgment. The revenue's learned standing counsel submitted that the appeal cannot be prosecuted 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 prosecuted on the ground of low tax effect. Assessee's Contention: Not recorded. Revenue's Contention: The revenue, through its learned standing counsel, submitted that the appeal cannot be prosecuted on the ground of low tax effect. No specific authorities or precedents were mentioned in support of this contention.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
OD-12 IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (INCOME TAX) ORIGINAL SIDE ITA 53 of 2014 COMMISSIONER OF INCOME TAX, KOLKATA-IV, KOLKATA VERSUS M/S. P.C. CHANDRA HOLDINGS PVT. LTD. BEFORE: The Hon’ble JUSTICE T. S. SIVAGNANAM AND The Hon’ble JUSTICE HIRANMAY BHATTACHARYYA Date : 18th JANUARY 2022. [Via Video Conference] Appearance: Mr. Arunabh Ganguly, Adv. ..for the appellant. Mr. J.P. Khaitan, Sr.Adv. Mr. Shankar Gupta,Adv. …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, Kolkata. The learned standing counsel appearing for the appellant/revenue has given instructions to the effect that this appeal cannot be prosecuted by the appellant/revenue on the ground of low tax effect. Recording the said submission, the appeal stands dismissed on the ground of low tax effect. Consequently, substantial questions of law which have been raised are left open. (T. S. SIVAGNANAM, J.) (HIRANMAY BHATTACHARYYA, J.) nm/GH.
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