DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3(2), KOLKATA vs. BHAGWAN DAS AGARWAL, KOLKATA

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ITA 1679/KOL/2024Status: HeardITAT Kolkata04 November 2024AY 2015-16Bench: SHRI SONJOY SARMA (Judicial Member), SHRI SANJAY AWASTHI (Accountant Member)4 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 dismissed the appeals filed by the Revenue. This was primarily due to the tax effect of the disputed additions being below the monetary limit prescribed by the CBDT circular for filing appeals.

What were the facts?

The Revenue filed appeals against the orders of the CIT(A) which deleted additions made by the AO. The additions pertained to cash deposits and their routing through banking channels by the assessee.

What were the issues?

Whether the appeals filed by the Revenue should be dismissed on the grounds of low tax effect as per CBDT circulars. The underlying issue was the deletion of additions made by the AO regarding cash deposits and their subsequent routing.

Which sections of the Income-tax Act were involved?

Section 268A,Section 250,Section 153A/143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH KOLKATA

Before: SHRI SONJOY SARMA & SHRI SANJAY AWASTHI

Hearing: 24.10.2024Pronounced: 04.11.2024

Present for: Appellant by : Devesh Poddar, Advocate Respondent by : Loviesh Shelly, Addl. CIT, Sr. DR Date of Hearing : 24.10.2024 Date of Pronouncement : 04.11.2024 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER: These appeals filed by the Revenue are against the three separate orders of the Ld. Commissioner of Income Tax, Kolkata-21 [hereinafter referred to as “the Ld. CIT(A)”] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2014-15, dated 29.02.2024, AY 2015-16 dated 07.03.2024, AY 2016-17 dated 13.03.2024 which have been passed against the assessment order u/s 153A/143(3) of the Act dated 31.12.2017.

“1 Whether the Ld. CIT(A) has erred in facts and in law by allowing the appeal of the aassessee by deleting the addition of Rs. 84,95,100/- made by the AO despite the fact that the AO had established in his assessment order that cash deposits were made by the assessee to the tune of Rs. 50.40 crores and were routed to other entities via banking channels controlled by the assessee.? 2. The department craves the right to add, alter, amend or withdraw any ground of appeal before or at the time of hearing.” 2.1. The Revenue has raised the following grounds of appeal in :

Whether the Ld. CIT(A) has erred in facts and in law by allowing the appeal “1 of the aassessee by deleting the addition of Rs. 84,95,100/- made by the AO despite the fact that the AO had established in his assessment order that cash deposits were made by the assessee to the tune of Rs. 50.40 crores and were routed to other entities via banking channels controlled by the assessee.? 2. The department craves the right to add, alter, amend or withdraw any ground of appeal before or at the time of hearing.” 2.2. The Revenue has raised the following grounds of appeal in ITA No. 1680/Kol/2024:

Whether the Ld. CIT(A) has erred in facts and in law by allowing the appeal “1 of the aassessee by deleting the addition of Rs. 84,95,100/- made by the AO despite the fact that the AO had established in his assessment order that cash deposits were made by the assessee to the tune of Rs. 50.40 crores and were routed to other entities via banking channels controlled by the assessee.? 2. The department craves the right to add, alter, amend or withdraw any ground of appeal before or at the time of hearing.”

3. It is seen, at the outset, that the tax effect on the disputed additions before us is less than Rs. 60 lakhs as prescribed in the CBDT’s latest Circular No. 09/2024 dated 17.09.2024 for filing appeals by the Revenue before this Tribunal.

3.1. This circular prescribes that the revised monetary limits shall apply retrospectively to pending appeals as well.

5.

In view of above stated position, the appeals of the Revenue are dismissed u/s 268A of the Act because of tax effect lower than the prescribed limits as per CBDT Circular No. 09/2024 (supra).

6.

In case, at a later stage, it is found that these appeals are indeed covered under ‘exceptions’ then the department would be at liberty to move the ITAT with an MA for appropriate considerations.

7.

In the result, all the appeals filed by the Revenue are dismissed. Order pronounced in the open court on 4th November, 2024.

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