INCOME TAX OFFICER, WARD - 12(1), KOLKATA vs. MERCURY SOLUTIONS LTD, KOLKATA

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ITA 1530/KOL/2024Status: DisposedITAT Kolkata04 March 2025AY 2017-18Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI RAKESH MISHRA, ACCOUNTANT MEMBER Ι.Τ.Α. No.: 1530/KOL/2024 Assessment Year: 2017-18 | Appellant | Respondent | | :---------------------------------------- | :------------------------------- | | Income Tax Officer, Ward-12(1), Kolkata | Mercury Solutions Ltd. | | PAN: AADCM7075M | | Appearances: Department represented by : Rama Choudhary, JCIT, Sr. DR. Assessee represented by : Susheel Gupta, AR. Date of concluding the hearing : March 4th, 203 pages

AI SummaryDismissed

Facts

The Revenue filed an appeal against the ADDL/JCIT(A)'s order for AY 2017-18, which was passed against an intimation order under Section 143(1) of the Income Tax Act. The tax effect from the relief granted by the first appellate authority was Rs. 54,36,470/-, which is below the monetary limit of Rs. 60,00,000/- prescribed by CBDT Instruction No. 9 of 2024 for filing appeals before the Tribunal.

Held

The Tribunal dismissed the Revenue's appeal as not maintainable due to the low tax effect, adhering to CBDT guidelines. However, it granted the Revenue liberty to file a Miscellaneous Application for recall if, upon re-verification, the tax effect exceeds the prescribed limit or falls under specified exceptions.

Key Issues

Maintainability of the Revenue's appeal before the ITAT when the tax effect of the dispute falls below the monetary limit stipulated by CBDT instructions.

Sections Cited

250, 143(1)

AI-generated summary — verify with the full judgment below

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

Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA

For Respondent: DR. Assessee represented by : Susheel Gupta, AR

PER BENCH: This appeal filed by the Revenue is against the order of the ADDL/JCIT(A)-Bhopal [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 29.05.2024, which has been passed against the intimation order u/s 143(1) of the Act, dated 27.09.2018. 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.: 1530/KOL/2024 Assessment Year: 2017-18 Mercury Solutions Ltd. 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. 54,36,470/- which is below Rs. 60,00,000/-. As per the CBDT’s Instruction 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 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.

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.

In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on 4th March, 2025. [George Mathan] [Rakesh Mishra] Judicial Member Accountant Member Dated: 04.03.2025 Bidhan (P.S.) I.T.A. No.: 1530/KOL/2024 Assessment Year: 2017-18 Mercury Solutions Ltd. Copy of the order forwarded to: