DCIT, CC-1(3), KOLKATA, KOLKATA V. .S M NIRYAT PVT. LTD., KOLKATA

ITA 1446/KOL/2024

AI Insights

The case involves appeals by the revenue against the order of the Commissioner of Income Tax (Appeals)-20, Kolkata, for the assessment years 2015-16, 2018-19, and 2019-20 concerning S. M. Niryat Pvt. Ltd. The revenue challenged the CIT(A)'s decision, but the Tribunal found that the appeals did not meet the revised monetary threshold for filing appeals as stipulated in the CBDT Circular No. 9/2024 dated 17.09.2024. The Tribunal dismissed the appeals on the grounds that they were not in accordance with the Department's policy to reduce litigation by not pursuing cases with a low tax effect.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 36498 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2019-2020
• Appeal Filed On: 28-06-2024
• Laws Referred To: CBDT Circular No. 9/2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “ए’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH: KOLKATA Įी राजेश क ुमार, लेखा सटèय एवं Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय क े सम¢ [Before Shri Rajesh Kumar, Accountant Member &Shri Pradip Kumar Choubey, Judicial Member] I.T.A. Nos. 1444 to 1446/Kol/2024 Assessment Years: 2015-16, 2018-19 & 2019-20 DCIT, CC-1(3), Kolkata Vs. S. M. Niryat Pvt. Ltd. (PAN: AAJCS 7460 E) Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 28.11.2024 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 09.12.2024 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri Tanmoy Kar, ACA For the revenue / राजèव कȧ ओर से Shri Subhendu Datta, CITDR ORDER / आदेश Per Pradip Kumar Choubey, JM: These are the appeals preferred by the revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-20, Kolkata (hereinafter referred to as the “Ld. CIT(A)”] for the AY 2015-16, 2018-19 & 2019-20. 2. At the outset, the Ld. Counsel for the assessee submitted that the CBDT has issued a Circular No. 9/2024 dated 17.09.2024, whereby the monetary limits for filing of appeal by the Department before Income Tax Appellate Tribunal and High Courts 2 I.T.A. Nos.1444 to 1446/Kol/2024 Assessment Year: 2015-16, 2018-19 & 2019-20 S. M. Niryat Pvt. Ltd. and SLP before Supreme Court have been increased as a measure for reducing Litigation. The revised monetary limits laid down in para-2 of this Circular are as follows: 1. Before Appellate Tribunal Rs. 60,00,000/- 2. Before High Court Rs. 2,00,00,000/- 3. Before Supreme Court Rs. 5,00,00,000/- 3. In the present case, the tax effect by the revenue is less than Rs.60,00,000/-. We note that this appeal had been filed by the revenue on 28.06.2024 and since the tax effect is within the monetary limit for filing appeals before Tribunal, in view of the Circular of CBDT (supra) at the first place, Revenue should not have preferred this appeal. In view of the above, we hold that the appeal filed by the Department, against the impugned order of the Ld. CIT(A), is contrary to the policy decision of the Department and as such the appeal filed by the Department is dismissed in limine. 4. As a matter of caution, we observe that if the Revenue finds at a later point of time that the tax effect in the appeal is more than Rs.60 lakhs or despite low tax effect, the appeal of the revenue is maintainable, the revenue is at liberty to move this Tribunal for recalling of this order. In the result, all the appeals of the revenue are dismissed. Order is pronounced in the open court on 9th December, 2024 Sd/- Sd/- (Rajesh Kumar/राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 9th December, 2024 SM, Sr. PS 3 I.T.A. Nos.1444 to 1446/Kol/2024 Assessment Year: 2015-16, 2018-19 & 2019-20 S. M. Niryat Pvt. Ltd. Copy of the order forwarded to: 1. Appellant- DCIT, CC-1(3), Kolkata 2. Respondent – S. M. Niryat Pvt. Ltd., 402, Sagar Trade Cube, 104, S P Mukherjee Road, Kolkata-700026 3. Ld. CIT(A)-20, Kolkata 4. Ld. Pr. CIT- Central-1, Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "