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

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ITA 1447/KOL/2024Status: DisposedITAT Kolkata05 November 2024AY 2013-14Bench: SRI RAJESH KUMAR, ACCOUNTANT MEMBER & PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER I.T.A. No.: 1447/KOL/2024 Assessment Year: 2013-14 DCIT, Kolkata.........................................................................Appellant Vs. Lakhotia Medical Centre Pvt. Ltd..........................................Respondent [PAN: AABCL 3939 M] Appearances: Department represented by: Prakash Nath Barnwal, CIT, DR. Assessee represented by: Miraj D. Shah, A.R. Date of concluding the hearing : October 17th, 2 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 noted that the tax effect was below the prescribed limit. The CIT(A) had also allowed the appeal based on the fact that a sister concern was assessed without adverse inferences for the same assessment year.

What were the facts?

The Revenue filed an appeal against the order of the CIT(A) for AY 2013-14. The tax effect of the disputed additions was found to be less than the monetary limits prescribed by CBDT Circular No. 09/2024.

What were the issues?

Whether the appeal filed by the Revenue should be dismissed due to low tax effect as per CBDT circular. Whether the CIT(A)'s reasoning for allowing the appeal was valid.

Which sections of the Income-tax Act were involved?

Section 147,Section 250,Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘B’ BENCH, KOLKATA

Before: SRI RAJESH KUMAR & PRADIP KUMAR CHOUBEY

For Respondent: DR. Assessee represented by: Miraj D. Shah, A.R

order

: November 6th, 2024 ORDER

Per Pradip Kumar Choubey, Judicial Member:

1.

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.

I.T.A. No.: 1447/KOL/2024 Assessment Year: 2013-14 Lakhotia Medical Centre Pvt. Ltd.

3.

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

4.

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.

5.

Accordingly, the appeal of the Revenue is dismissed u/s 268A of the Act because of low tax effect than the prescribed limits as per CBDT Circular No. 09/2024 (supra). Order pronounced in the open Court on 6th November, 2024. Sd/- Sd/- [Rajesh Kumar] [Pradip Kumar Choubey] Accountant Member Judicial Member Dated: 06.11.2024 Bidhan (P.S.) Copy of the order forwarded to:

1. 1. DCIT, Kolkata.

2. Lakhotia Medical Centre Pvt. Ltd., 10, Dr Abani Dutta Road, Golabari, Howrah, West Bengal, 711106.

3. CIT(A)-21, Kolkata.

4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata.

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