DCIT, CIR-4(1), KOLKATA, KOLKATA vs. M/S B. R. MALHOTRA & CO. LTD., KOLKATA

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ITA 895/KOL/2015Status: DisposedITAT Kolkata15 December 2015AY 2004-20052 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 Revenue's appeal as the tax effect was below the revised monetary limit set by CBDT Circular No. 21/2015. The circular allows for withdrawal or not pressing of pending appeals below Rs. 10,00,000/-.

What were the facts?

The Revenue appealed the CIT(A)'s decision to allow a commission payment of Rs. 6,73,286/-. The Assessing Officer had questioned the necessity of employing a commission agent for procuring export orders.

What were the issues?

Whether the Revenue's appeal should be dismissed due to the tax effect being below the revised monetary limit prescribed by CBDT for appeals before the Tribunal.

AI-generated summary — verify with the full judgment below

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

Before: Shri P.M. Jagtap

Nate of concluding the hearing : December 15, 2015 Date of pronouncing the order : December 15, 2015

O R D E R This appeal is preferred by the Revenue against the order of ld. Commissioner of Income Tax (Appeals)-V, Kolkata dated 16.03.2015 for the assessment year 2004-05 and the solitary ground raised by the Revenue therein reads as under:- “That on the facts and in the circumstances of the case, the ld. CIT(A) erred in facts as well as in law in holding that the disallowance of Rs.6,73,286/- on account of commission paid to M/s. Shah Enterprise for procuring export order was not warranted, ignoring the fact that the Assessing Officer in the remand report categorically opined that the necessity of employing a commission agent could not be established”.

2.

At the time of hearing before me, the ld. Counsel for the assessee, at the outset, has submitted that the tax effect involved in this appeal of the Revenue is less than the revised monetary limit recently fixed by the CBDT vide Circular No. 21/2015 dated 10th December, 2015 at Rs.10,00,000/- for filing the appeal by the Revenue before the Tribunal ./2015 Assessment year: 2004-2005 Page 2 of 2 and this position clearly evident from the ground raised by the Revenue in this appeal is not disputed even by the ld. D.R. In Circular No. 21/2015 (supra) recently issued by the CBDT, the monetary limit for filing the appeals by the Revenue before the Tribunal has been increased to Rs.10,00,000/- and as clarified in the said Circular, the said monetary limit is applicable retrospectively even to the appeals pending before the Tribunal. The CBDT has also instructed that such pending appeals below this specified tax limit of Rs.10,00,000/- may be withdrawn/ not pressed. Keeping in view the instruction given by the CBDT vide Circular No. 21/2015 dated 10.12.2015, which is squarely applicable in the present case, the appeal filed by the Revenue in this case is treated as withdrawn/not pressed and dismissed accordingly.

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