DCIT, CENTRAL CIRCLE-1(4), KOLKATA, KOLKATA V. SAMARTH FABLON PRIVATE LIMITED, KOLKATA

ITA 73/KOL/2025

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax against the order of the Commissioner of Income Tax (Appeals), Kolkata-20, which had granted relief to Samarth Fablon Pvt. Limited for the assessment year 2017-18. The Revenue's appeal was based on the contention that the tax effect from the CIT(Appeals)'s order was significant. However, it was found that the tax effect was less than ₹60,00,000, as per the recent CBDT Circular No. 9/2024, which directs that appeals should not be filed if the tax effect is below this threshold unless it falls under specific exceptions. The court, after reviewing the submissions and the tax effect, dismissed the appeal due to the low tax effect and lack of any applicable exceptions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785224 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2017-2018
• Appeal Filed On: 09-01-2025
• Laws Referred To: CBDT Circular No. 9/2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

" ITA No. 73/KOL/2025 (A.Y. 2017-2018) Samarth Fablon Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘D’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) & Shri Rajesh Kumar, Accountant Member I.T.A. No. 73/KOL/2025 Assessment Year: 2017-2018 Deputy Commissioner of Income Tax,..….…Appellant Central Circle-1(4), Kolkata, Aayakar Bhawan Poorva, 110, Shanti Pally, Kolkata-700107 -Vs.- Samarth Fablon Pvt. Limited,..……...…….Respondent Gandhi House, 4th Floor, 16, Ganesh Chandra Avenue, Kolkata-700013 [PAN:AAKCS7663N] Appearances by: Shri S.B. Chakraborthy, Addl. CIT, Sr. D.R., appeared on behalf of the Revenue Shri Akshay Ringasia, CA, appeared on behalf of the assessee Date of concluding the hearing: October 08, 2025 Date of pronouncing the order: October 31, 2025 O R D E R Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeal is preferred by the Revenue against the order of ld. Commissioner of Income Tax (Appeals), Kolkata-20 dated 20th August, 2024 passed for assessment year 2017-18. Printed from counselvise.com ITA No. 73/KOL/2025 (A.Y. 2017-2018) Samarth Fablon Pvt. Limited 2 2. The ld. Counsel for the assessee, at the very outset, submitted that tax effect by virtue of relief given by the ld. CIT(Appeals) is less than Rs.60 lakhs and, therefore, in view of the CBDT Circular No. 9/2024 dated 17th September, 2024, the present appeal is not maintainable. 3. On the other hand, ld. D.R. could not rebut or controvert this fact. 4. With the assistance of ld. Representatives, we have gone through the record carefully. It is pertinent to note that the tax effect by virtue of relief given by the first appellate authority is less than ₹60,00,000/- as mentioned in Col. No. 10 of Form No. 36. which is stated to be ₹20,45,539/- and which is below ₹60,00,000/-. As per the CBDT’s Circular No. 9 of 2024 issued on 17th September, 2024, the CBDT has directed its subordinate authorities not to file appeal against the order of the Ld. CIT(Appeals) before the Tribunal if the tax effect by virtue of relief given by the ld. CIT(Appeals) is less than ₹60,00,000/-. Such order could only be challenged if it comes within the exceptions provided in the Instruction. Ld. Sr. DR could not rebut this fact nor could he demonstrate how the appeal was covered under any of the exceptions; therefore, this appeal is not maintainable. 5. On due consideration of the above facts and circumstances, we dismiss this appeal of the Revenue on Printed from counselvise.com ITA No. 73/KOL/2025 (A.Y. 2017-2018) Samarth Fablon Pvt. Limited 3 account of low tax effect. However, in case on re- verification of the facts at the end of the Ld. Assessing Officer, it emerges that the tax effect is more than the limit for filing the appeal or this case falls under any of the exceptions provided in the instruction, then the Revenue will be at liberty to file a Miscellaneous Application for recall of this order and revival of the appeal. Such an application should be filed within the time limit provided in the Act. 6. In the result, the appeal filed by the Revenue is dismissed. Order pronounced in the open Court on 31/10/2025. Sd/- Sd/- (Rajesh Kumar) (Duvvuru RL Reddy) Accountant Member Vice-President Kolkata, the 31st day of October, 2025 Copies to :(1) Deputy Commissioner of Income Tax, Central Circle-1(4), Kolkata, Aayakar Bhawan Poorva, 110, Shanti Pally, Kolkata-700107 (2) Samarth Fablon Pvt. Limited, Gandhi House, 4th Floor, 16, Ganesh Chandra Avenue, Kolkata-700013 (3) CIT(Appeals), Kolkata-20; Printed from counselvise.com ITA No. 73/KOL/2025 (A.Y. 2017-2018) Samarth Fablon Pvt. Limited 4 (4) CIT - ; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. Printed from counselvise.com "