PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL-2, KOLKATA vs. ACYTELENE TREXIM (P) LTD.
What did the High Court hold?
The High Court condoned the delay in filing the appeal. However, the appeal was disposed of on the ground of low tax effect, leaving the substantial questions of law open.
What were the facts?
The revenue filed an appeal against an ITAT order concerning additions made on account of inflated purchase price of shares and disallowance of keyman insurance policy payment. The revenue sought condonation of delay in filing the appeal.
What were the issues?
Whether the Tribunal was justified in deleting additions related to share purchase inflation and keyman insurance policy disallowances. The appeal was ultimately dismissed due to low tax effect.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
OD 5 & 6
IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (INCOME TAX) ORIGINAL SIDE
ITAT/218/2017 IA NO:GA/1/2017 [OLD NO:GA/1865/2017]
PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL-2, KOLKATA VS. ACYTELENE TREXIM [P] LTD.
………
ITAT/218/2017 IA NO:GA/2/2017 [OLD NO:GA/1866/2017]
PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL-2, KOLKATA VS. ACYTELENE TREXIM [P] LTD. ………
PRESENT: THE HON’BLE JUSTICE T.S. SIVAGNANAM
And THE HON’BLE JUSTICE HIRANMAY BHATTACHARYYA Date: 10th February, 2022.
Appearance: Mr. Soumen Bhattacharjee, Adv. …for the appellant.
RE: GA/1/2017 [OLD NO:GA/1865/2017)
The Court.: We have heard Mr. Soumen Bhattachrjee, learned junior standing counsel for the appellant/revenue. There is a delay of 146 days in filing this appeal. Notice on the respondent/assessee yet to be served. However, taking note of the submission of the learned junior standing counsel for the appellant that the appeal is hit by the monetary policy framed by the CBDT, we exercise discretion and condone the delay in filing this appeal.
2 The application, IA NO.GA/1/2017 [OLD No:GA/1865/2017] stands disposed of accordingly. RE: ITAT/218/2017
This appeal by the revenue filed under Section 260A of the Income Tax Act, 1961, (the Act, in brevity) is directed against the order dated 03.08.2016 passed by the Income Tax Appellate Tribunal, “C” Bench, Kolkata (Tribunal) in ITA No.1429/Kol/2012 for the assessment year 2009-10. The revenue has raised the following substantial questions of law for our consideration. a. Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in deleting the addition of Rs.1,05,36,000/- made on account of inflation of purchase price of Rs.1,60,000/- equity shares of Gujarat Heavy Chemicals ? b. Whether on the facts and in the circumstances of the case and in law the Tribunal was not justified in deleting the disallowances of Rs.15,00,000/- on account of payment made for Keyman’s Insurance Policy for its director ?
We have heard Mr. Soumen Bhattachrjee, learned junior standing counsel for the appellant/revenue. It is submitted by the learned counsel for the appellant that the appeal cannot be pursued by the revenue on account of low tax effect. This is evident from paragraph 8 of the stay petition wherein the revenue has stated that the tax effect involved in the matter is Rs.35,81,186/- and Rs.5,09,850/-. Therefore, the appeal is disposed of on the ground of low tax effect and the substantial question of law is left open.
3 The stay application, IA NO.GA/2/2017 [OLD NO:GA/1866/2017] also stands disposed of.
(T.S. SIVAGNANAM, J.)
(HIRANMAY BHATTACHARYYA, J.)
pkd/s.pal AR(CR)
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