What did the Tribunal hold?

The Tribunal noted that the issue was no longer res integra, as the Hon'ble Calcutta High Court had ruled in favour of the assessee, and the Revenue's SLP against that order was dismissed by the Supreme Court. Therefore, the Revenue's appeal was dismissed on merits.

The Revenue appealed against the CIT(A)'s order allowing the cess on green leaf as an allowable expenditure for the assessment year 2003-04. The tax effect of the appeal was below the threshold specified by CBDT circular.

What were the issues?

Whether the cess on green leaf is an allowable expenditure. Whether the appeal is maintainable given the tax effect and CBDT circular.

DCIT vs M/S Eximpo Tea Limited | ITAT Kolkata 2017

Income Tax Appellate Tribunal, Kolkata Bench, KOLKATA

Before: SRI ABY T.VARKEY & DR. A. L. SAINI

Hearing: 05.01.2017Pronounced: 13.01.2017

ORDER Per Aby T.Varkey, JM

This is an appeal by the Revenue against the order dated 13.11.2013 of CIT(A)-XVI relating to A.Y.2003-04.

At the outset we take note that the tax effect of the instant appeal preferred by the Revenue is less than Rs. 10,00,000/- , so as per the CBDT circular no. 21/2015 dt. 10.12.2015 the appeal shall be withdrawn or not pressed. We take note that the instant appeal preferred by the Revenue is hit by the aforesaid circular of the CBDT and, therefore, on this account the appeal need not be pursued further. However, we note that the issue before us which is being challenged by the Revenue is no longer res integra.

2. The grievance of the revenue is regarding the action of the Ld. CIT(A) in holding that the cess on green leaf of Rs. 5,73,105/- is an allowable expenditure. We take note that the Ld. CIT(A) has given relief to the assessee by relying on the order of the Hon’ble Calcutta High Court ITR 270 pg. 167 to give the relief. The SLP preferred by the Revenue against the order of the Hon’ble Calcutta High Court has been dismissed by the Hon’ble Supreme Court. In light of the same the issue which is assailed before us is no longer res integra. Therefore, on merits also the Revenue’s appeal stands dismissed.

In the result, the appeal by the Revenue is dismissed.

Order pronounced in the open Court on 13.01.2017

Sd/ Sd/-

[Dr. A.L.Saini] [A.T.Varkey] Accountant Member Judicial Member Dated : 13.01.2017 {SC SPS} Copy of the order forwarded to:

1. P-7, Chowringhee Square, Kolkata-700069.

Eximpo Tea Limited, 3-B, Lal Bazar Street, 2nd Floor, Kolkata-700001. 3. CIT(A)-XVI, Kolkata. 4. CIT-II, Kolkata. 4. CIT(DR), Kolkata Benches, Kolkata.

DCIT,CIR-4, KOLKATA, KOLKATA vs. M/S EXIMPO TEA LIMITED, KOLKATA

What did the Tribunal hold?

What were the facts?

What were the issues?

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