DCIT, CC-2(3), KOLKATA, KOLKATA V. PRABHU POLY PIPES LIMITED, KOLKATA

ITA 1709/KOL/2024

AI Insights

The case involves an appeal by the revenue against the order of the Commissioner of Income Tax (Appeal)-26, Kolkata, concerning the assessment year 2014-15. The appeal was dismissed by the Income Tax Appellate Tribunal, Kolkata, on the grounds that the tax effect was below the revised monetary limits for filing appeals, as stipulated in the CBDT Circular No. 9/2024. The Tribunal noted that the Department should not have preferred this appeal, and it was dismissed in limine, with a provision for the Department to move for recalling this order if the tax effect was found to be more than Rs. 60 lakhs or if the appeal was otherwise maintainable despite the low tax effect.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469657 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• 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 “सी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” 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. No. 1709/Kol/2024 Assessment Year: 2014-15 DCIT, CC-2(3), Kolkata Vs. Prabhu Poly Pipes Ltd. (PAN: AADCP 9033 E) Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 18.03.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 25.03.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri S. S. Gupta, A.R For the revenue / राजèव कȧ ओर से Smt. Ranu Biswas, Addl. CITDR ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the revenue against the order of Commissioner of Income Tax (Appeal)-26, Kolkata (hereinafter referred to as the Ld. CIT(A)] dated 22.05.2024 for AY 2014-15. 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 2 I.T.A. No. 1709/Kol/2024 Assessment Year: 2014-15 Prabhu Poly Pipes Ltd. of appeal by the Department before Income Tax Appellate Tribunal and High Courts 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 13.08.2024 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, the appeal of the revenue is dismissed. Order is pronounced in the open court on 25th March, 2025 Sd/- Sd/- (Rajesh Kumar /राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 25th March, 2025 SM, Sr. PS 3 I.T.A. No. 1709/Kol/2024 Assessment Year: 2014-15 Prabhu Poly Pipes Ltd. Copy of the order forwarded to: 1. Appellant- DCIT, Central Circle-2(3), Kolkata 2. Respondent – Prabhu Poly Pipes Limited, 12th Floor, Room No. 07, 33A, J. L. Nehru Road, Chowringhee Road, Kolkata-700071 3. Ld. CIT(A)-26, Kolkata 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "