PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL-2,KOLKATA vs. M/S. CONCAST STEEL & POWER LTD. @ SPS STEELS & POWER LTD.

PDF · subscribers
ITA/9/2017HC CalcuttaWBCHCO000075201710 November 2022Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the revenue. The primary reason for dismissal was the low tax effect, which was found to be much less than the threshold limit fixed by the CBDT in its circular. Consequently, the revenue could not pursue the appeal. The Court explicitly stated that the substantial question of law, which had been admitted for consideration, was left open and not decided on merits. Therefore, no finding was rendered on the perversity of the ITAT's conclusion regarding the undisclosed income.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax, Central-2, Kolkata (the revenue) against an order dated 30.06.2015 passed by the Income Tax Appellate Tribunal (ITAT), Kolkata. The ITAT's order pertained to assessment year 2008-09. The appeal was admitted on a substantial question of law concerning an amount of Rs.1,13,65,623/-. The revenue argued that the ITAT's conclusion that this amount was not over and above the declared income of Rs.6.84 crores was perverse, especially since the assessee had accepted the addition in assessment and had not appealed against it. However, it was noted that the tax effect in this case was below the threshold limit fixed by the CBDT circular.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the conclusion arrived at by the learned Tribunal that in respect of the amount of Rs.1,13,65,623/-, there is no evidence proving that the entries recorded in the documents found during the course of search are over and above the income as already declared by the assessee at Rs.6.84 crores as undisclosed income, where the assessee has accepted the addition in assessment and has not appealed against it, is perverse? (Question of law/mixed law and fact, concerning undisclosed income and perversity of findings). Assessee's Contention: The judgment does not record any specific contentions made by the assessee regarding the substantial question of law. The assessee had accepted the addition in assessment and had not appealed against it before the ITAT. Revenue's Contention: The revenue contended that the ITAT's conclusion regarding the amount of Rs.1,13,65,623/- was perverse, as the assessee had accepted the addition in assessment and had not appealed against it. However, the revenue also submitted that the tax effect in the instant case was much less than the threshold limit fixed by the CBDT in its circular, implying that the appeal could not be pursued.

Which sections of the Income-tax Act were involved?

206A

AI-generated summary — verify with the full judgment below

OD – 14 IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (INCOME TAX) ORIGINAL SIDE ITA/9/2017 PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL-2, KOLKATA Vs M/S. CONCAST STEEL & POWER LTD. @ SPS STEELS & POWER LTD. BEFORE : THE HON’BLE JUSTICE T.S. SIVAGNANAM And THE HON’BLE JUSTICE HIRANMAY BHATTACHARYYA Dated : NOVEMBER 10, 2022. Appearance: Mr. Prithu Dhudheria, Adv. …for appellant Mr. J. P. Khaitan, Sr. Adv., …for respondent The Court :- This appeal filed by the revenue under section 206A of the Income Tax Act, 1961 [the Act] challenging the order dated 30.06.2015 passed by the Income Tax Appellate Tribunal “B” Bench Kolkata in ITA 1391 & 1414/Kol/2011 for the assessment order in 2008-09. The appeal was admitted on the following substantial question of law :- i) Whether on the facts and in the circumstances of the case, conclusion arrived at by the learned Tribunal that in respect of the amount of Rs.1,13,65,623/- there is no evidence proving that the entries recorded in the documents found during course of search is over and above the income as already declared by the assessee at Rs.6.84 crores as undisclosed income where the assessee has accepted the addition in assessment and has not appealed against it, is perverse ? As submitted by the learned standing Counsel appearing for appellant and as could be seen from the records placed before this Court the tax effect in the instant case

2 is much less than the threshold limit fixed by the C.B.D.T. in its circular. Therefore, the appeal cannot be pursued by the revenue. Therefore, the appeal stands dismissed on the low tax effect. The question which was admitted for consideration is left open. (T.S. SIVAGNANAM, J.)

(HIRANMAY BHATTACHARYYA, J.) Pkd/GH

Recent GST High Court judgments

Search GST case law →