INCOME TAX OFFICER, WARD-27(1),HALDIAIT, HALDIA vs. H PORT EMP CO SOCY LIMITED, HALDIA - EAST MIDNAPORE

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ITA 1455/KOL/2024Status: DisposedITAT Kolkata21 March 2025AY 2017-18Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI RAKESH MISHRA (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 dismissed the Revenue's appeal on the grounds of low tax effect, citing a CBDT circular. The Revenue was given liberty to file a Miscellaneous Application if facts warrant reconsideration.

What were the facts?

The Revenue filed an appeal against an order of the CIT(A) for AY 2017-18. The Ld. AR objected to the admission of the appeal due to the tax effect being below the threshold limit.

What were the issues?

Whether the appeal is maintainable due to the tax effect being below the prescribed monetary limit as per CBDT circular.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘A’ BENCH, KOLKATA

Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA

PER BENCH: 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 10.05.2024, which has been passed against the assessment order u/s u/s 143(3) of the Act, dated 29.12.2019. 2. It is pertinent to note that the tax effect by virtue of relief given by the first appellate authority is less than Rs. 60,00,000/- as mentioned I.T.A. No.: 1455/KOL/2024 Assessment Year: 2017-18 H Port Emp Co Socy Limited. 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 Rs. 57,99,612/- which is below Rs. 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(A) before the Tribunal if the tax effect by virtue of relief given by the ld. CIT(A) is less than Rs. 60,00,000/-. Such an order could only be challenged if it comes within the exceptions provided in the Instruction. Ld. Sr. DR 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.

3.

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 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.

4.

In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on 21st March, 2025. [George Mathan] [Rakesh Mishra] Judicial Member Accountant Member Dated: 21.03.2025 Bidhan (P.S.) I.T.A. No.: 1455/KOL/2024 Assessment Year: 2017-18 H Port Emp Co Socy Limited. Copy of the order forwarded to:

1.

ITO, Ward-27(1), Haldia.

2.

H Port Emp Co Socy Limited, 3rd Floor Block A Operation Building, Haldia, West Bengal, 721604. 3. CIT(A)-NFAC, Delhi.

4.

CIT-

5.

CIT(DR), Kolkata Benches, Kolkata.

6.

Guard File. //// By order

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