COMMISSIONER OF INCOME TAX,, KOLKATA-XI vs. MODERN INTERNATIONAL
What did the High Court hold?
The High Court held that the appeal could not be pursued by the Revenue due to the low tax effect, as stipulated by the CBDT circular. Consequently, the appeal was dismissed on this ground. The Court noted that the substantial questions of law, which had been previously framed, were left open and not decided on merits. The operative direction was the dismissal of the appeal.
What were the facts?
The appeal was filed by the Revenue under Section 260A of the Income Tax Act, 1961, against an order dated February 17, 2012, passed by the Income Tax Appellate Tribunal, "A" Bench, Kolkata. The appeal pertains to the assessment year 2008-09. The assessee is Modern International. The appeal was admitted by the High Court, and substantial questions of law were framed on July 30, 2012. The Revenue's counsel submitted that the tax effect in the appeal was below the threshold limit stipulated by the CBDT circular.
What were the issues?
1. Whether the appeal, having a tax effect below the threshold limit prescribed by the CBDT circular, can be pursued by the Revenue? (Question of law, turning on CBDT circulars and Section 260A of the Income Tax Act, 1961). Contentions: Assessee: No arguments recorded. Revenue: The tax effect in the instant appeal is below the threshold limit as per the CBDT circular, and therefore, the appeal cannot be pursued further.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
O-5 IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (INCOME TAX) ORIGINAL SIDE ITA/94/2012 COMMISSIONER OF INCOME TAX, KOLKATA-XI, KOLKATA VS. MODERN INTERNATIONAL BEFORE : THE HON’BLE JUSTICE T.S. SIVAGNANAM And THE HON’BLE JUSTICE HIRANMAY BHATTACHARYYA Date : 17th November, 2022 Appearance : Mr. Soumen Bhattacharjee, Adv. …for the appellant The Court : This appeal at the instance of the revenue under Section 260A of the Income Tax, 1961 (the Act) is directed against the order dated February 17, 2012 passed by the Income Tax Appellate Tribunal, “A” Bench, Kolkata in ITA No. 1253/Kol/2011 for the assessment year 2008-09. Mr. Soumen Bhattacharjee, learned standing counsel representing the appellant/revenue, submits that the tax effect in the instant appeal is below the threshold limit as per the CBDT circular. In view thereof, the revenue cannot pursue the appeal any further. Accordingly, the appeal stands dismissed on the ground of low tax effect.
2 The substantial questions of law already framed by this Court by order dated July 30, 2012 are left open. (T.S. SIVAGNANAM, J.)
(HIRANMAY BHATTACHARYYA, J.) SN. AR(CR)
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