DCIT, CIR-6(1), KOLKATA, KOLKATA vs. CESC LTD., KOLKATA

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ITA 2441/KOL/2019Status: DisposedITAT Kolkata26 November 2020AY 2007-082 pages
AI SummaryWithdrawn

What did the Tribunal hold?

The Tribunal noted that the tax effect in the Revenue's appeal was indeed below ₹50 lakh. Therefore, in accordance with the CBDT circular, the appeal was to be dismissed as withdrawn.

What were the facts?

The Revenue filed an appeal against an order of the CIT(A) for AY 2007-08. The assessee pointed out that the tax effect in the appeal was below the threshold limit of ₹50 lakh as per CBDT Circular No. 3 of 2018.

What were the issues?

The primary issue was whether the Revenue's appeal should be dismissed due to a low tax effect, as per CBDT guidelines.

Which sections of the Income-tax Act were involved?

Section 115JB,Section 250

AI-generated summary — verify with the full judgment below

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

Before: Sri J. Sudhakar Reddy & Sri Aby T. Varkey

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘B’ BENCH, KOLKATA (Virtual Court) (Before Sri J. Sudhakar Reddy, Accountant Member & Sri Aby T. Varkey, Judicial Member) Assessment Year: 2007-08 DCIT, Circle-6(1), Kolkata................................................................................................Appellant Vs. M/s. CESC Limited......………………..…............................................................................Respondent [PAN: AABCC 2903 N] Appearances by: Smt. Ranu Biswas, Addl. CIT, appeared on behalf of the Revenue. Sh. Diparun Mukherjee, A/R, appeared on behalf of the Assessee. Date of concluding the hearing : November 19th, 2020 Date of pronouncing the order : November 26th, 2020 ORDER Per J. Sudhakar Reddy, AM:

This is an appeal filed by the Revenue directed against the order of the Learned Commissioner of Income Tax (Appeals)-20, Kolkata, [hereinafter the “CIT(A)”], passed u/s. 250 of the Income Tax Act, 1961 (the ‘Act’), dated 14.08.2019 for the Assessment Year 2007-08. There is a delay of 9 days in filing of the appeal. Delay condoned and appeal is admitted.

2.

At the outset, the assessee pointed out that the tax effect in this Revenue appeal was below ₹50 lakh. He pointed out that the AO has committed a mistake in taking the tax effect on the issue of reduction of the amount transferred to Debenture Redemption Reserve amounting to ₹190 lakh, while computing book profits u/s 115JB of the Act.

3.

When questioned, the ld. D/R could not controvert the submission of the ld. Counsel for the assessee that the total tax effect in the Revenue appeal is only 28.16 lakh and not 63.10 lakh as projected by the AO. The computation of the tax effect could not be controverted by the ld. D/R.

Assessment Year: 2007-08 M/s. CESC Limited. 4. Hence, as the tax effect impact in this Revenue case is below ₹50 lakh, in view of the Circular No. 3 of 2018 by the CBDT, this appeal of the Revenue is to be dismissed as withdrawn.

5.

In the result, the appeal filed by the Revenue is dismissed. Kolkata, the 26th November, 2020. Sd/- Sd/- [Aby T. Varkey] [J. Sudhakar Reddy] Judicial Member Accountant Member Dated: 26.11.2020 Bidhan (P.S.) Copy of the order forwarded to:

1. 1. DCIT, Circle-6(1), Kolkata.

2. M/s. CESC Limited, CESC House, 1, Chowringhee Square, Kolkata-700 001.

3. CIT(A)-20, Kolkata. (sent through mail) 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata. (sent through mail)

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