ITO, WARD-6(1), KOLKATA vs. NEWMOUNT VINIMAY, KOLKATA

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ITA 648/KOL/2020Status: DisposedITAT Kolkata28 November 2022AY 2012-133 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal filed by the Revenue was contrary to the Department's own policy decision regarding monetary limits for appeals. Therefore, the appeal was dismissed in limine.

What were the facts?

The Revenue filed an appeal before the ITAT, Kolkata, which was pointed out to be barred by limitation. However, the Tribunal condoned the delay considering the COVID-19 pandemic period. The assessee submitted that the tax effect was below the monetary limit for filing appeals as per CBDT Circular No. 17/2019.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable given the tax effect was below the prescribed monetary limit for appeals before the Tribunal as per CBDT circular.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH: KOLKATA

Before: Shri Rajesh Kumar & Shri Sonjoy Sarma]

This is an appeal preferred by the revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-7, Kolkata [hereinafter referred to as ‘ Ld. CIT(A)’] dated 02.09.2020 for the assessment year 2012-13.

2.

Though the Registry has pointed out that the appeal is barred by limitation, however, in view of the decision of the Hon’ble Supreme Court in Miscellaneous Application No. 665 of 2021 in SMW(C ) No. 3 of 2020, the period of filing appeal

Newmount Vinimoy Pvt. Ltd. during the COVID-19 pandemic is to be excluded for the purpose of counting the limitation period. In view of this, the appeal is treated as filed within the limitation period.

3.

At the outset ,the Ld. Counsel for the assessee submitted that the CBDT has issued a Circular No. 17/2019 dated 08.08.2019, whereby the monetary limits for filing of appeal by the Department before Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court have been increased as a measure for reducing Litigation. The revised monetary limits laid down in para-2 of this Circular are as follows:

1.

Before Appellate Tribunal Rs. 50,00,000/- 2. Before High Court Rs.1,00,00,000/- 3. Before Supreme Court Rs. 2,00,00,000/-

4.

In the present case, the tax effect by the revenue is less than Rs.50,00,000/-. We note that this appeal had been filed by the revenue on 08.02.2021 and since the tax effect is within the monetary limit for filing appeals before Tribunal, in view of theCircular of CBDT (supra) at the first place, Revenue should not have preferred this appeal. In view of the above, we hold that the appeal filed by the Department, against the impugned order of the Ld. CIT(A), is contrary to the policy decision of the Department and as such the appeal filed by the Department is dismissed in limine.

5.

As a matter of caution, we observe that if the Revenue finds at a later point of time that the tax effect in the appeal is more than Rs.50 lakhs or despite low tax effect, the appeal of the revenue is maintainable, the revenue is at liberty to move this Tribunal for recalling of this order.

Newmount Vinimoy Pvt. Ltd. 6. In the result, appeal of the revenue is dismissed.

Order is pronounced in the open court on 28th November, 2022

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