DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-11(1), KOLKATA, KOLKATA vs. FUNNY COMMOTRADE PRIVATE LIMITED, KOLKATA

ITA 1450/KOL/2023Status: DisposedITAT Kolkata22 January 2025AY 2015-1563 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 held that the appeal filed by the Revenue is not maintainable. The reasoning is based on CBDT Circular No. 9 of 2024, which directs subordinate authorities not to challenge orders of the Ld. CIT(Appeals) before the Tribunal if the tax effect of the relief granted is less than Rs. 60,00,000/-, unless the case falls under specific exceptions. In this case, the tax effect was Rs. 15,49,082/-, and the Revenue's representative conceded that the case did not fall under any exceptions. Therefore, the Tribunal dismissed the appeal on account of the monetary limit for filing appeals. The Tribunal also noted that if upon re-verification, the Assessing Officer finds that the tax effect exceeds the limit or the case falls under an exception, the Revenue can file a Miscellaneous Application for revival of the appeal within the prescribed time limits.

What were the facts?

The Revenue, represented by the DCIT, Central Circle, 11(1), Kolkata, filed an appeal before the Income Tax Appellate Tribunal (ITAT) challenging an order passed by the Ld. CIT(A) under section 250 of the Income Tax Act, 1961. This order was passed against the assessment order under section 143(3) dated 30.11.2017 for Assessment Year 2015-16. The assessee, Funny Commotrade Private Limited, Kolkata, did not appear before the Tribunal. The tax effect of the relief granted by the Ld. CIT(A) was stated to be Rs. 15,49,082/-, which is below the threshold of Rs. 60,00,000/- stipulated by CBDT Circular No. 9 of 2024 for challenging such orders before the Tribunal.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the Tribunal, considering the tax effect of the relief granted by the Ld. CIT(A) and the applicability of CBDT Circular No. 9 of 2024. The Revenue contended that the appeal is maintainable, and it does not fall under any exceptions to the circular. The assessee did not present any arguments as they were absent. The Revenue argued that the tax effect of the relief granted by the Ld. CIT(A) is Rs. 15,49,082/-, which is less than the monetary limit of Rs. 60,00,000/- prescribed by CBDT Circular No. 9 of 2024. The Revenue stated that the case does not fall under any of the exceptions mentioned in the circular, making the appeal non-maintainable. The assessee did not make any submissions.

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, “D” BENCH KOLKATA

Before: SHRI SANJAY GARG & SHRI RAKESH MISHRA

For Appellant: Shri Arup Chatterjee, Addl. CIT

Hearing: 21.01.2025Pronounced: 22.01.2025

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the Revenue is against the order of the Ld. Commissioner of Income Tax (hereinafter referred to as “the Ld. CIT (A)”) passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2015-16 dated 30.06.2023, which has been passed against the assessment order u/s 143(3) of the Act,

dated 30.11.2017. 2. None attends on behalf of the assessee, therefore, the appeal was heard with the assistance of Ld. Sr. DR. We have gone through the facts of the case. It is noted from the record that the tax effect by virtue of the relief given by the first appellate authority is mentioned in Form No. 36 at Rs. 15,49,082/- which is less than Funny Commotrade Private Limited, Kolkata;A.Y. 2015-16

Rs.60,00,000/-. As per the CBDT Circular No. 9 of 2024 issued on 17th September, 2024, the CBDT has directed its subordinate authorities not to challenge the order of the ld. CIT(Appeals) before the Tribunal if the tax effect by virtue of relief granted by the ld. CIT(Appeals) is less than Rs.60,00,000/-. Such order could only be challenged if it comes within any of the exceptions provided in the circular. The ld. Sr. DR, was fair enough not to dispute this fact on the basis of record and it could not be demonstrated that this case falls under any of the exceptions. Therefore, the appeal is not maintainable.

On due consideration of the above facts and circumstances, we dismiss this appeal of the Revenue on account of monetary limit for filing of the appeal. However, in case on re-verification of the facts at the end of the Assessing Officer, it emerges that the tax effect is more than the limit for filing the appeal or this case falls in any of the exceptions provided in the circular, then the Revenue will be at liberty to file a Miscellaneous Application for revival of this appeal. Such application should be filed within the time limit

provided in the Act and as per law.

In the result, the appeal of the Revenue is dismissed.

Order pronounced in the Court on 22.4 January, 2025 at Kolkata. (SANJAY GARG) (RAKESH MISHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER

Kolkata, Dated *Bidhan, Sr.Ps Funny Commotrade Private Limited, Kolkata;A.Y. 2015-16

ares Bt wfafefa saf¥a/Copy of the Order forwarded to:

atteref_/ The Appellant

Werf / The Respondent

Safer saeaX syed / Concerned Pr. CIT 4 oreee aged (31Ct)/ The CIT(A)- 5. faurfla off, sree orice after , HAedI/DRITAT, Kolkata, 6& mS WA /Guard file. STeQMR/ BY ORDER, Assistant Registrar sree stich sifu ITAT, Kolkata Sr. Particulars Date Initials Person No. concerned 1__| Drafted on 22.01.2025 Sr.PS 2__| Draft placed before author Sr.PS 3 | Draft proposed & placed before the second AM Member 4 | Draft discussed/approved by Second Member AM 5__| Approved Draft comes to the Sr.PS/PS Sr.PS 6 _| Kept for pronouncement on Sr.PS 7__| File sent to the Bench Clerk Sr.PS 8 | Date on which file goes to the Head Clerk 9 | Date of dispatch of Order 10 | Dictation Sheet is attached herewith No

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