DEPUTY COMMISSIONER OF INCOME TAX, KOLKATA vs. LAKHOTIA MEDICAL CENTRE PVT. LTD., HOWRAH

The instant appeal filed by the Revenue pertaining to the Assessment Year (in short ‘AY’) 2013-14 is directed against the order passed u/s 250 of the Income Tax Act, 1961 (in short the ‘Act’) by ld. Commissioner of Income- tax (Appeals)-21, Kolkata [in short ld. ‘CIT(A)’] dated 30.11.2023 arising out of the assessment order framed u/s 147 of the Act dated 26.03.2022. 2 It is seen, at the outset, that the tax effect on the disputed additions before us is less than Rs. 60 Lakh as prescribed in the CBDT’s latest Circular No. 09/2024 dated 17.09.2024. 2.1. This circular prescribes that the revised monetary limits shall apply retrospectively to pending appeals as well.

The ld. DR has stated that tax effect involved in appeal is less than the prescribed limit but it comes an exemption clause.

In view of above stated position, I have perused the order of the CIT(A) and find that CIT(A) before allowing the appeal has held thus- “In the present case, the share applicant company is a sister concern, assessed by the same AO and whose statement for the same AY: 2013-2014 was concluded during the same year (in which the assessment u/s 147 in respect of the appellant company was concluded) without any adverse inferences.” Keeping in view the above findings we do not find force in the arguments of the D/R that it comes in the exemption clause.