INCOME TAX OFFICER, WARD-5(1), KOLKATA, KOLKATA vs. EXPRESSION NOVELTIES PRIVATE LIMITED, KOLKATA
Income Tax Appellate Tribunal, KOLKATA ‘A’ BENCH, KOLKATA
Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the Revenue is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961
(hereinafter referred to as ‘the Act’) for AY 2017-18 dated 30.04.2025, which has been passed against the assessment order u/s 143(3) of the Act, dated 12.12.2019.The assessee has also filed Cross Objections in respect of the appeal of the Revenue.
2. The Revenue is in appeal before the Tribunal raising the following grounds of appeal:
I.T.A. No.: 1351/KOL/2025
&
CO No. 60/KOL/2025
Assessment Year: 2017-18
Expression Novelties Pvt. Ltd.
“1. Whether on facts and circumstances of the case and in law, the Ld.
CIT(A) erred in allowing the appeal of the assessee by deleting the addition of Rs. 68,50,000/- made u/s 69A of the Act on account of unexplained money without going through the merits of the case in that the assessee failed to furnish any plausible explanation regarding the deposit of huge cash during the demonetisation period.
2. Whether on facts and circumstances of the case and in law, the Ld. CIT(A) erred in coming to the conclusion that the assessee had discharged the initial onus which lay upon him in terms of section 69A of the Act although the assessee failed to prove the genuineness of the entire transaction.
3. Whether on the facts and circumstances of the case and in law, the CIT(A) erred in deleting the addition u/s 69A of the 1.T. Act, 1961 without asking for remand report from the Assessing Officer for fresh verification and thus violating the provisions of Rule 46A of the 1.T. Rules.
4. Whether on the facts and circumstances of the case and in law, the Ld.
CIT(A) has erred in facts and in law in not appreciating the judicial principles laid down in the matter of Sreelekha Banerjee v. Commissioner of Income- tax [1963] 49 ITR 112 (SC) wherein the Hon'ble Apex Court held that high denomination notes tendered for conversion by assessee contended as money other than cash balance without explanation of its source can be treated as income of assessee from undisclosed sources.
5. Whether on the facts and circumstances of the case and in law, the Ld.
CIT(A) has erred in facts and in law in not appreciating the judicial principles laid down in the matter of Pr. CIT Vs. Swati Bajaj reported in [2022] 139
taxmann.com 352 (Cal)/446 ITR 56 (Cal) wherein the Hon'ble High Court at Calcutta laid down guidelines on the manner in which the allegation against the assessee has to be considered.
6. Whether on the facts and circumstances of the case, and in law, the Ld.
CIT(A) has failed to appreciate the judicial principles laid down in the matter of Sumati Dayal v. CIT [1995] 214 ITR 801 (SC) and also in the matter of CIT
Vs. Durga Prasad More 1973 CTR (SC) 500: [1971] 82 ITR 540 (SC).
7. It may be pleaded that although the tax effect in this case is below the prescribed monetary limit as per Circular No. 09/2024 dated 17.09.2024, yet appeal may be filed before the Hon'ble ITAT in view of the fact that the case falls under the exceptional clause 'h' given in paragraph 3.1 in CBDT's circular no. 5 dated 15.03.2024. I.T.A. No.: 1351/KOL/2025
&
CO No. 60/KOL/2025
Assessment Year: 2017-18
Expression Novelties Pvt. Ltd.
8. That the appellant craves leave to add to and/or alter, amend, modify or rescind the grounds hereinabove before or at the time of hearing of this appeal.”
2.1
The assessee has also filed Cross objections on the department’s appeal raising the following issues:
“1. That the Id. AO erred in issuing notice u/s 143(2) of the Act dated
28/09/2018
without complying to the CBDT
Instruction
F.No.225/157/2017/ITA-II dated 23.06.2017 and so the notice issued u/s 143(2) is not valid as per law and hence the entire assessment order and the assessment proceedings under the Act is bad in law.
The appellant craves leave to produce additional evidences in terms of Rule 29 of the Income Tax (Appellate Tribunal) Rules 1963. 3. The appellant craves leave to press new, additional grounds of appeal or modify. withdraw any of the above grounds at the time of hearing of the appeal.” 3. Brief facts of the case are that the assessee is a Company engaged in the retail sale of mobile phones. The assessee had filed its return of income for AY 2017-2018 on 30/10/2017 declaring total income of Rs.17,58,770/-. The said return was taken up for scrutiny assessment. The notice u/s 143(2) of the IT Act 1961 dated 28/09/2018 was issued by the ITO, Ward 5(4) who allegedly did not have juri iction over the case of the assessee. The assessment order was passed on 12/12/2019 by the ITO, Ward 5(4) Kolkata determining the income of the assessee Company at Rs.86,08,770/- after adding Rs.68,50,000/- being cash deposited during the demonetization period which was considered as unexplained money u/s. 69A of the I.T. Act, 1961. 4. Aggrieved with the assessment order, the assessee filed an appeal before the Ld. CIT(A) who, vide order dated 30.04.2025, allowed the appeal of the assessee. Aggrieved with the order of the Ld. CIT(A), the I.T.A. No.: 1351/KOL/2025 & CO No. 60/KOL/2025 Assessment Year: 2017-18 Expression Novelties Pvt. Ltd. Revenue has filed the appeal before the Tribunal while the assessee has also filed Cross Objections. 5. Rival contentions were heard and the submissions made have been examined. At the outset, the Ld. AR highlighted that the tax effect was below the monetary limit for filing the appeal and, therefore, the appeal filed by the Revenue was not maintainable. It is pertinent to note that the tax effect by virtue of the relief given by the first appellate authority is less than ₹60,00,000/- as mentioned in Col. No. 10 of Form No. 36. The Ld. AR objected to the admission of the appeal as the tax effect is stated to be ₹52,91,625/-, which is below ₹60,00,000/-. As per the CBDT’s Circular No. 9 of 2024 issued on 17th September, 2024, the CBDT has directed its subordinate authorities not to file appeal against the order of the ld. CIT(Appeals) before the Tribunal if the tax effect by virtue of relief given by the ld. CIT(Appeals) is less than Rs.60,00,000/- Such order could only be challenged if it comes within the exceptions provided in the Instruction. The Ld. Sr. DR could not rebut this fact although Ground No. 7 mentions that the case is covered under the exceptions but he could not demonstrate how the appeal was covered under any of the exceptions; therefore, this appeal of the Revenue is not maintainable. 6. On due consideration of the above facts and circumstances, we dismiss this appeal of the Revenue on account of low tax effect. However, in case on re-verification of the facts at the end of the Ld. Assessing Officer, it emerges that the tax effect is more than the limit for filing the appeal or this case falls under any of the exceptions provided in the instruction, then the Revenue will be at liberty to file a I.T.A. No.: 1351/KOL/2025 & CO No. 60/KOL/2025 Assessment Year: 2017-18 Expression Novelties Pvt. Ltd. Miscellaneous Application for recall of this order and revival of the appeal. Such an application should be filed within the time limit provided in the Act. As regards the Cross Objections of the assessee, the Ld. AR submitted that he was withdrawing the Cross Objections filed, which are also dismissed as withdrawn. 7. In the result, the appeal filed by the Revenue is dismissed while the Cross Objections filed by the assessee are also dismissed as withdrawn.
Order pronounced in the open Court on 29th August, 2025. [George Mathan]
[Rakesh Mishra]
Judicial Member
Accountant Member
Dated: 29.08.2025
Bidhan (Sr. P.S.)
I.T.A. No.: 1351/KOL/2025
&
CO No. 60/KOL/2025
Assessment Year: 2017-18
Expression Novelties Pvt. Ltd.
Copy of the order forwarded to:
Expression Novelties Pvt. Ltd.18 & 18/1, sarat Bose Road, Bhowanipore, Kolkata (West Bengal) - 700020 2. ITO, Ward 5(1), Aayakar Bhawan, P-7, Chowringhee Square, Kolkata (West Bengal) - 700069. 3. CIT(A)-NFAC, Delhi. 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata. 6. Guard File. //// By order