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

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ITA 1991/KOL/2019Status: DisposedITAT Kolkata24 December 2019AY 2005-063 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal filed by the Revenue was contrary to the department's policy decision due to the low tax effect. Therefore, the appeal was dismissed in limine.

What were the facts?

The Revenue filed an appeal against an order of the CIT(A) for the assessment year 2005-06. The net tax effect involved in the appeal was less than Rs. 50,00,000/- as prescribed by CBDT's Circular No. 17/2019.

What were the issues?

The primary issue was whether the Revenue's appeal was maintainable given the low tax effect, which was below the threshold stipulated by CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 263,Section 251,Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC”, BENCH KOLKATA

Before: SHRI S.S.GODARA, JM

For Appellant: Shri Jayanta Khanra, JCIT, Sr. DR
Hearing: 24/12/2019Pronounced: 24/12/2019

आदेश / O R D E R

1.

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.

2.

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.

3.

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.

4.

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.

5.

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

Order pronounced in the Court on 24.12.2019

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