DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 4(2), KOLKATA, AAYAKAR BHAWAN POORVA vs. CHEMICON ENGINEERING CONSULTANTS PRIVATE LIMITED, MUMBAI

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ITA 1397/KOL/2024Status: DisposedITAT Kolkata20 November 2024AY 2016-17Bench: Shri Rajesh Kumar (Accountant Member), Shri Sonjoy Sarma (Judicial Member)3 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 condoned the delay in filing the Revenue's appeals. However, it was held that the appeals were not maintainable due to the low tax effect, as per CBDT circulars. Consequently, the cross-objections filed by the assessee were rendered infructuous.

What were the facts?

The Revenue filed appeals against the CIT(A) orders for AY 2015-16 and 2016-17, with a delay of 82 days. The assessee filed cross-objections. The tax effect in these appeals was below the prescribed monetary limit set by the CBDT.

What were the issues?

Whether appeals filed by the Revenue are maintainable before the Tribunal when the tax effect is below the prescribed monetary limit set by the CBDT.

Which sections of the Income-tax Act were involved?

CBDT Circular No. 09/2024, CBDT Circular No.17/2019

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH KOLKATA

Before: Shri Rajesh Kumar & Shri Sonjoy Sarma

order : November 20, 2024 ORDER

Per Sonjoy Sarma, Judicial Member:

1. The revenue has filed appeals under & 03.02.2024 by the Commissioner of Income Tax (Appeals)-27, Kolkata [hereinafter referred to as the ‘CIT(A)’] for assessment years 2015-16 & 2016-17. Additionally, the assessee has filed corresponding cross- objections in C.O No.36/Kol/2024 & C.O No.37/Kol/2024 for the respective assessment years.

1.

I.T.A. Nos.1396&1397/Kol/2024 & C.O. Nos.36&37/Kol/2024 Assessment Years: 2015-16 & 2016-17 2. At the time of hearing, the ld. DR submitted that there was delay of 82 days in filing the appeals by the revenue. The reason for the delay is duly mentioned in the condonation petition submitted by the revenue. After perusing the condonation petition, we find that the revenue has demonstrated a reasonable cause for the delay. Accordingly, we condone the delay in filing the appeals and the appeals are admitted for adjudication on merits.

3.

At the outset, the ld. AR contended that the present appeals filed by the revenue relate to assessment years i.e. A.Y 2015-16 & 2016-17, where the tax effect involved is below Rs.60 lacs, the prescribed monetary limit fixed by the CBDT vide Circular No. 09/2024 dated 17/09/2024 for filing appeals before the Tribunal. The ld. counsel argues that as per CBDT Circular No.17/2019 dated 08.08.2019, appeals with tax effect below Rs.50 lacs was subsequently enhanced to Rs.60 lacs by the latest circular issued by the CBDT. The present appeals should not be perused before Tribunal and may be dismissed on the ground of low tax effect.

4.

On the other hand, the ld. DR acknowledged that the tax effect involved in the present appeals are below the prescribed limit. However, the ld. DR submitted that the appeals may have been filed erroneously.

5.

We, after hearing both the parties and reviewing the mater on record, find that the tax effect is involved in appeals i.e. & Rs.60 lacs, the prescribed monetary threshold under the CBDT for filing appeals before the Tribunal. There is no indication that the revenue’s appeals fall within any of the exceptions outlined in the CBDT’s circular. In the light of the above, the appeals filed by the revenue are not maintainable and liable to be dismissed as per the guidelines of the CBDT Circular of 2024, the consequential cross-objections i.e. C.O No.36/Kol/2024 & C.O No.37/Kol/2024 filed by the assessee are rendered infructuous and are 2 & C.O. Nos.36&37/Kol/2024 Assessment Years: 2015-16 & 2016-17 also dismissed. The revenue’s appeals in & C.O No.36/Kol/2024 & C.O No.37/Kol/2024 filed by the assessee are also dismissed as infructuous.

6.

In the result, the appeals filed by the revenue are dismissed and cross-objections filed by the assessee are also dismissed.

Kolkata, the 20th November, 2024.

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