A.C.I.T.CIRCLE-15(1), KOLKATA vs. M/S ABCI INFRASTRUCTURES PVT. LTD., KOLKATA

This Revenue’s appeal for assessment year 2005-06 is directed against the CIT(A)-8, Kolkata’s order dated 30/05/2019 passed in case no. 10251/CIT(A)- 8/2014-15/ involving proceedings u/s 263 / 251 /143(3) / 147 of the Income Tax Act, 1961 ( in short the ‘Act’). Heard the ld. D.R.. Case file perused.

It transpires during the course of hearing that the net tax effect involved in this Revenue’s appeal is less than Rs. 50,00,000/- prescribed in CBDT’s Circular No. 17/2019 dated 08/08/2019. There is further no issue that the same applies with retrospective effect as well. This Revenue’s appeal fails further above sole reason therefore.

In the event, the Revenue finds at a later point of time that the tax effect in the appeal is more than Rs.50 lakhs or despite low tax effect the appeal of the M/s ABCI Infrastructure Pvt. Ltd. Assessment Year:2005-06 revenue is maintainable, the revenue is at liberty to move this Tribunal for recalling of this order.

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.

In the result, the appeal by the Revenue is dismissed for involving lower than the prescribed tax effect.