DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, 3(2), KOLKATA V. BHAGWAN DAS AGARWAL, KOLKATA

ITA 1678/KOL/2024

AI Insights

The case involves three appeals by the Deputy Commissioner of Income Tax, Central Circle, Kolkata, against Bhagwan Das Agarwal concerning the assessment years 2014-15, 2015-16, and 2016-17. The appeals were directed against the orders of the Commissioner of Income Tax (Appeals), Kolkata, which had deleted the additions made by the Assessing Officer (AO) regarding alleged unaccounted cash deposits. The AO had claimed that cash deposits amounting to Rs. 50.40 crores were made by the assessee and routed through banking channels controlled by him. However, the CIT(A) overturned this decision, leading to the Revenue's appeal. The tribunal dismissed the appeals based on the monetary threshold set by the CBDT, despite the serious allegations of financial misconduct against the respondent.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 33103 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 24-10-2024
• Assessment Year: 2014-2015
• Appeal Filed On: 08-08-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEVESH PODDAR
• Assessee Lawyers: LOVIESH SHELLY
• Keywords: Tax effect
• Section: 250; 268A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH KOLKATA BEFORE SHRI SONJOY SARMA, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No. 1678/KOL/2024 Assessment Year: 2014-15 ITA No. 1679/KOL/2024 Assessment Year: 2015-16 & ITA No. 1680/KOL/2024 Assessment Year: 2016-17 Deputy Commissioner of Income Tax, Central Circle, 3(2), Kolkata, 110, Shantipally, Aayakar Bhawan, Poorva, Kolkata - 700107 Vs Bhagwan Das Agarwal, 21, Hemant Basu Sarani, Dalhousie - 700001 (PAN: AFJPA9084Q) (Appellant) (Respondent) Present for: Appellant by : Devesh Poddar, Advocate Respondent by : Loviesh Shelly, Addl. CIT, Sr. DR Date of Hearing : 24.10.2024 Date of Pronouncement : 04.11.2024 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER: These appeals filed by the Revenue are against the three separate orders of the Ld. Commissioner of Income Tax, Kolkata-21 [hereinafter referred to as “the Ld. CIT(A)”] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2014-15, dated 29.02.2024, AY 2015-16 dated 07.03.2024, AY 2016-17 dated 13.03.2024 which have been passed against the assessment order u/s 153A/143(3) of the Act dated 31.12.2017. 2 ITA Nos. 1678-1680/Kol/2024 Bhagwan Das Agarwal. : AYs: 2014-15 – 2016-17 2. The Revenue has raised the following grounds of appeal in ITA No. 1678/Kol/2024: “1 Whether the Ld. CIT(A) has erred in facts and in law by allowing the appeal of the aassessee by deleting the addition of Rs. 84,95,100/- made by the AO despite the fact that the AO had established in his assessment order that cash deposits were made by the assessee to the tune of Rs. 50.40 crores and were routed to other entities via banking channels controlled by the assessee.? 2. The department craves the right to add, alter, amend or withdraw any ground of appeal before or at the time of hearing.” 2.1. The Revenue has raised the following grounds of appeal in ITA No. 1679/Kol/2024: “1 Whether the Ld. CIT(A) has erred in facts and in law by allowing the appeal of the aassessee by deleting the addition of Rs. 84,95,100/- made by the AO despite the fact that the AO had established in his assessment order that cash deposits were made by the assessee to the tune of Rs. 50.40 crores and were routed to other entities via banking channels controlled by the assessee.? 2. The department craves the right to add, alter, amend or withdraw any ground of appeal before or at the time of hearing.” 2.2. The Revenue has raised the following grounds of appeal in ITA No. 1680/Kol/2024: “1 Whether the Ld. CIT(A) has erred in facts and in law by allowing the appeal of the aassessee by deleting the addition of Rs. 84,95,100/- made by the AO despite the fact that the AO had established in his assessment order that cash deposits were made by the assessee to the tune of Rs. 50.40 crores and were routed to other entities via banking channels controlled by the assessee.? 2. The department craves the right to add, alter, amend or withdraw any ground of appeal before or at the time of hearing.” 3. It is seen, at the outset, that the tax effect on the disputed additions before us is less than Rs. 60 lakhs as prescribed in the CBDT’s latest Circular No. 09/2024 dated 17.09.2024 for filing appeals by the Revenue before this Tribunal. 3.1. This circular prescribes that the revised monetary limits shall apply retrospectively to pending appeals as well. 3 ITA Nos. 1678-1680/Kol/2024 Bhagwan Das Agarwal. : AYs: 2014-15 – 2016-17 4. The ld. DR has also fairly stated that tax effect involved in appeals are less than the prescribed limit. 5. In view of above stated position, the appeals of the Revenue are dismissed u/s 268A of the Act because of tax effect lower than the prescribed limits as per CBDT Circular No. 09/2024 (supra). 6. In case, at a later stage, it is found that these appeals are indeed covered under ‘exceptions’ then the department would be at liberty to move the ITAT with an MA for appropriate considerations. 7. In the result, all the appeals filed by the Revenue are dismissed. Order pronounced in the open court on 4th November, 2024. Sd/- Sd/- (Sonjoy Sarma) (Sanjay Awasthi) Judicial Member Accountant Member Dated: 04.11.2024 AK, P.S. 4 ITA Nos. 1678-1680/Kol/2024 Bhagwan Das Agarwal. : AYs: 2014-15 – 2016-17 Copy to: 1. The Appellant: 2. The Respondent. 3. CIT(A) 4. The CIT, 5. DR, ITAT, Kolkata Bench, Kolkata //True Copy// By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "