COMMISSIONER OF INCOME TAX, KOLKATA-III, KOL vs. M/S. SONAL TIE-UP PVT. LTD.

PDF · subscribers
ITA/92/2011HC CalcuttaWBCHCO000903201103 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 on the ground of low tax effect. The Court noted that the total taxable income computed in the assessment order was only Rs. 31,110/-, which was below the threshold limit fixed by the CBDT for pursuing appeals. Consequently, the Revenue was disentitled from proceeding with the appeal. The substantial question of law framed at the time of admission of the appeal was left open and not decided on merits. No operative directions were issued as the appeal was dismissed on a procedural ground.

What were the facts?

The Revenue, Commissioner of Income Tax, Kolkata-III, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated September 30, 2010, passed by the Income Tax Appellate Tribunal (ITAT), 'A' Bench, Kolkata. The appeal pertains to the assessment year 2005-06 and challenges the ITAT's decision to cancel an order passed under Section 263 of the Act. The ITAT had held that the Explanation to Section 73 of the Act did not apply. The total taxable income as per the assessment order was Rs. 31,110/-.

What were the issues?

1. Whether the Tribunal committed a substantial error of law in cancelling the order passed under Section 263 of the Income Tax Act by wrongly holding that the Explanation to Section 73 of the Act did not apply. The Revenue contended that the Tribunal erred in its interpretation and application of the Explanation to Section 73. The assessee's contentions are not recorded in the judgment. The Tribunal's decision on this issue led to the cancellation of the Section 263 order.

Which sections of the Income-tax Act were involved?

Section 260A,Section 263,Section 73

AI-generated summary — verify with the full judgment below

OD-16

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

ITA/92/2011

COMMISSIONER OF INCOME TAX, KOLKATA-III, KOLKATA VS. M/S. SONAL TIE-UP PVT. LTD.

BEFORE :

THE HON’BLE JUSTICE T.S. SIVAGNANAM

And THE HON’BLE JUSTICE HIRANMAY BHATTACHARYYA Date : 3rd November, 2022

Appearance : Mr. Aryak Dutt, Adv.. …for appellant.

The Court : This appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 (the Act, for brevity) is directed against the order dated 30th September, 2010 passed by the Income Tax Appellate Tribunal ‘A’ Bench, Kolkata In ITA No.827/Kol/209 for the assessment year 2005-06. The appeal was admitted on 21st February, 2011 on the following substantial question of law: “Whether the Tribunal below committed substantial error of law in cancelling the order passed under Section 263 of the Income Tax by wrongly holding that Explanation to Section 73 of the Act did not apply?” We have heard Mr. Aryak Dutt, learned standing counsel appearing for the appellant/revenue. As could be seen from the assessment order, the total taxable income was computed to be only Rs.31,110/-. If that be so, the tax effect in this appeal is

2 far below the threshold limit fixed by the CBDT and, therefore, the appellant/revenue is disentitled from pursuing this appeal further. In the light of the above, the appeal stands dismissed on the ground of low tax effect. Consequently, the substantial question of law is left open.

(T.S. SIVAGNANAM, J.)

(HIRANMAY BHATTACHARYYA, J.)

S.Pal/SN

More judgments on Section 263

All 13,616 judgments and leading authorities on Section 263 →

Recent GST High Court judgments

Search GST case law →