INCOME TAX OFFICER, WARD-9(1), KOLKATA, KOLKATA vs. BHUSARG MERCANTILE PRIVATE LIMITED, KOLKATA

PDF · subscribers
ITA 474/KOL/2025Status: HeardITAT Kolkata03 September 2025AY 2014-15Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI SANJAY AWASTHI (Accountant Member)1 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 loan taken by the assessee was repaid before the assessment proceedings. The revenue failed to demonstrate that the case involved tax evasion activities. Consequently, on account of the tax effect being below Rs.60 lakh, the revenue's appeal was dismissed.

What were the facts?

The appeal was filed by the assessee against the order of the CIT(A). The revenue was represented by the Sr. DR, while the assessee remained unrepresented despite notice. The total tax effect in the revenue's appeal was Rs.38,01,581/-.

What were the issues?

Whether the revenue's appeal is admissible given the low tax effect and the repayment of the loan before assessment proceedings.

Which sections of the Income-tax Act were involved?

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, KOLKATA

Before: SHRI GEORGE MATHAN & SHRI SANJAY AWASTHI

For Appellant: Smt. Madhumita Das, Addl. CIT-Sr. DR
Hearing: 03.09.2025Pronounced: 03.09.2025

ORDER Per George Mathan: This is an appeal filed by the assessee against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [hereinafter referred to as the ‘CIT(A)’] in appeal no.NFAC/2013- 14/10279745 dated 23.12.2024 for assessment year 2014-15.

2.

Smt. Madhumita Das, Sr. DR represented on behalf of the revenue and none represented on behalf of the assessee. Notice has been issued through RPAD and still there is no appearance.

3.

A perusal of the facts shows that the total tax effect in the revenue’s appeal is only Rs.38,01,581/-. The ld. Sr. DR has made a submission that vide Ground no.6, the revenue stated that the addition is found to be organized tax evasion activities and therefore, the exception clause is applied.

4.

A perusal of the order of the ld. CIT(A) clearly shows that the loan taken by the assessee has also been repaid before the assessment proceedings itself. The revenue has not been able to show that this is a case of tax evasion activity. This being so, on account of tax effect as it is below Rs.60 lakh, the appeal of the revenue stands dismissed.

5.

In the result, the appeal of the revenue is dismissed.

Kolkata, the 3rd September, 2025.

Recent GST High Court judgments

Search GST case law →