INCOME TAX OFFICER, ASANSOL vs. SHRI RAM MULTICOM, RANIGANJ

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 2020-21 dated 28.10.2024, which has been passed against the order u/s 154 of the Act, dated
17.03.2022. I.T.A. No.: 219/KOL/2025
Assessment Year: 2020-21
Shri Ram Multicom.
2. The Revenue is in appeal before the Tribunal raising the following grounds of appeal:
“1. Whether the Ld. CIT(A), NF AC was justified in allowing the appeal filed by the assessee thus allowing the deletion of addition of Rs.1,11,640/- for A.Y. 2020-21 made u/s 154/143(1) of the I.T. Act,1961 in respect of employees’ contributions towards PF and ESI for failure to deposit the same in the respective PF and ESI accounts of the employees on or before the due dates as per the relevant Funds Act without going into the validity of the provisions of section 36(1)(va) and section 2(24)(x) of I.T. Act, 1961 simply relying on the earlier decisions of various judicial forum and completely ignoring the landmark judgment of the Hon’ble Supreme Court of India in the case of M/s Checkmate Services Pvt. Ltd. vs. CIT-I where the issue has been discussed comprehensively holding the validity of the provisions of section 36(1)(va) and section 2(24)(x) of the I.T. Act, 1961. This decision of the Hon’ble Supreme Court of India made on 12.10.2022 by the bench comprising of Chief Justice of India along with two other Supreme Court
Judges supersedes all the earlier orders of all the High Courts.
Consequently, the constitutional validity of the provisions of section 36(1)(va) and section 2(24)(x of the I.T. Act, 1961 have come under challenge here by this decision of the Ld. CIT(A), NFAC.
2. That the appellant craves leave to add, alter, amend, modify, substitute, delete and/or rescind all or any of the grounds of appeal on or before final hearing.”
3. None appeared on behalf of the assessee and therefore the appeal was heard with the assistance of the Ld. Sr. DR. It is pertinent to note that the tax effect by virtue of relief given by the first appellate authority is less than ₹60,00,000/- as mentioned in Col. No. 10 of Form No. 36. which is stated to be ₹40,571/- and 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 ₹60,00,000/-. Such order could only be challenged if it comes within the exceptions provided in the Instruction. Ld. Sr. DR
I.T.A. No.: 219/KOL/2025
Assessment Year: 2020-21
Shri Ram Multicom.
could not rebut this fact nor could he demonstrate how the appeal was covered under any of the exceptions; therefore, this appeal is not maintainable.
4. On due consideration of the above facts and circumstances, we dismiss this appeal of the Revenue on account of low tax effect as the constitutional validity of the provisions are not under challenge but the issue has been settled in favour of the revenue by the decision of the Hon’ble Apex Court and the case does not fall under any of the exceptions. 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 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.
5. In the result, the appeal filed by the revenue is dismissed.
Order pronounced in the open Court on 30th June, 2025. [Pradip Kumar Choubey]

[Rakesh Mishra]
Judicial Member

Accountant Member
Dated: 30.06.2025
Bidhan (P.S.)
I.T.A. No.: 219/KOL/2025
Assessment Year: 2020-21
Shri Ram Multicom.
Copy of the order forwarded to: