ITO WD-2(1), KOLKATA vs. RASHI IMPEX (P) LTD, KOLKATA

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ITA 2075/KOL/2024Status: DisposedITAT Kolkata11 February 2025AY 2010-11Bench: Shri Pradip Kumar Choubey (Judicial Member), Shri Sanjay Awasthi (Accountant Member)3 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 found that the tax effect in the revenue's appeal was less than Rs. 60,00,000/-, which falls below the monetary limit prescribed by the CBDT circular. Consequently, the appeal was deemed not maintainable and was dismissed in limine. The Tribunal added that the revenue could apply for a recall of the order if the tax effect was later found to be higher or if the appeal was otherwise maintainable.

What were the facts?

The revenue filed an appeal against the order of the Ld. CIT(A) for AY 2010-11. The assessee highlighted a CBDT Circular No. 9/2024, dated 17.09.2024, which increased monetary limits for filing appeals, noting that the tax effect in this case was below the revised threshold for appeals to the Tribunal.

What were the issues?

Whether the revenue's appeal before the Income Tax Appellate Tribunal is maintainable when the tax effect involved is below the monetary limit stipulated by a CBDT circular.

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 Pradip Kumar Choubey&Shri Sanjay Awasthi]

ORDER / आदेश Per Pradip Kumar Choubey, JM: This is an appeal preferred by the revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-21, Kolkata (hereinafter referred to as the “Ld. CIT(A)”] dated 20.06.2024 for the AY 2010-11.

2.

At the outset, the Ld. Counsel for the assessee submitted that the CBDT has issued a Circular No. 9/2024 dated 17.09.2024, whereby the monetary limits for filing of appeal by the Department before Income Tax Appellate Tribunal and High Courts Assessment Year: 2010-11 Rashi Impex Pvt. Ltd. and SLP before Supreme Court have been increased as a measure for reducing Litigation. The revised monetary limits laid down in para-2 of this Circular are as follows:

1.

Before Appellate Tribunal Rs. 60,00,000/- 2. Before High Court Rs. 2,00,00,000/- 3. Before Supreme Court Rs. 5,00,00,000/-

3.

In the present case, the tax effect by the revenue is less than Rs.60,00,000/-. We note that this appeal had been filed by the revenue on 07.10.2024 and since the tax effect is within the monetary limit for filing appeals before Tribunal, in view of the Circular of CBDT (supra) at the first place, Revenue should not have preferred this appeal. In view of the above, we hold that the appeal filed by the Department, against the impugned order of the Ld. CIT(A), is contrary to the policy decision of the Department and as such the appeal filed by the Department is dismissed in limine.

4.

As a matter of caution, we observe that if the Revenue finds at a later point of time that the tax effect in the appeal is more than Rs.60 lakhs or despite low tax effect, the appeal of the revenue is maintainable, the revenue is at liberty to move this Tribunal for recalling of this order. In the result, the appeal of the revenue is dismissed. Order is pronounced in the open court on 11th February, 2025

Sd/- Sd/- (Sanjay Awasthy/संजय अव�थी) (Pradip Kumar Choubey /�द�प कुमार चौबे) Accountant Member/लेखा सद�य Judicial Member/�या�यक सद�य Dated: 11th February, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- ITO, Ward-2(1), Kolkata 2. Respondent – Rashi Impex Pvt. Ltd., 2A, Ganesh Chandra Avenue, Room No. 4, Kolkata-700013 3. Ld. CIT(A)-21, Kolkata 4. Ld. Pr. CIT- Central-1, Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail)

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