DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-11(1), KOLKATA, KOLKATA V. FUNNY COMMOTRADE PRIVATE LIMITED, KOLKATA

ITA 1450/KOL/2023

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2015-16. The appeal was based on an assessment order under section 143(3) of the Income Tax Act, 1961, dated 30.11.2017. The primary issue was the monetary threshold for filing appeals set by the CBDT, which was Rs. 60,00,000. The CIT(A)'s relief to the respondent, Funny Commotrade Private Limited, resulted in a tax effect of Rs. 15,49,082, below this threshold. Consequently, the Tribunal dismissed the appeal, emphasizing adherence to the CBDT's directive not to challenge such orders unless they fall under specific exceptions, which was not demonstrated in this case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25481 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARUP CHATTERJEE
• Keywords: Tax effect
• Section: 143(3); 250

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH KOLKATA BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No. 1450/KOL/2023 Assessment Year: 2015-16 DCIT, Central Circle, 11(1) Kolkata, 6th Floor, Aaykar Bhavan P-7, Chowringhee Square, Kolkata-700069 Vs Funny Commotrade Private Limited, Kolkata S. Mullen Street, Kolkata-700020 West Bengal (Appellant) (Respondent) PAN: AAACF3747Q Present for: Appellant by : Shri Arup Chatterjee, Addl. CIT, Sr. DR Respondent by : None Date of Hearing : 21.01.2025 Date of Pronouncement : 22.01.2025 O R D E R PER RAKESH MISHRA, ACCOUNTANT MEMBER: This appeal filed by the Revenue is against the order of the Ld. Commissioner of Income Tax (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 2015-16 dated 30.06.2023, which has been passed against the assessment order u/s 143(3) of the Act, dated 30.11.2017. 2. None attends on behalf of the assessee, therefore, the appeal was heard with the assistance of Ld. Sr. DR. We have gone through the facts of the case. It is noted from the record that the tax effect by virtue of the relief given by the first appellate authority is mentioned in Form No. 36 at Rs. 15,49,082/- which is less than Page | 2 ITA No. 1450/KOL/2023 Funny Commotrade Private Limited, Kolkata;A.Y. 2015-16 Rs.60,00,000/-. As per the CBDT Circular No. 9 of 2024 issued on 17th September, 2024, the CBDT has directed its subordinate authorities not to challenge the order of the ld. CIT(Appeals) before the Tribunal if the tax effect by virtue of relief granted by the ld. CIT(Appeals) is less than Rs.60,00,000/-. Such order could only be challenged if it comes within any of the exceptions provided in the circular. The ld. Sr. DR, was fair enough not to dispute this fact on the basis of record and it could not be demonstrated that this case falls under any of the exceptions. Therefore, the appeal is not maintainable. 3. On due consideration of the above facts and circumstances, we dismiss this appeal of the Revenue on account of monetary limit for filing of the appeal. However, in case on re-verification of the facts at the end of the Assessing Officer, it emerges that the tax effect is more than the limit for filing the appeal or this case falls in any of the exceptions provided in the circular, then the Revenue will be at liberty to file a Miscellaneous Application for revival of this appeal. Such application should be filed within the time limit provided in the Act and as per law. 4. In the result, the appeal of the Revenue is dismissed. Order pronounced in the Court on 22nd January, 2025 at Kolkata. Sd/- Sd/- (SANJAY GARG) (RAKESH MISHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER Kolkata, Dated *Bidhan, Sr.Ps Page | 3 ITA No. 1450/KOL/2023 Funny Commotrade Private Limited, Kolkata;A.Y. 2015-16 आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अिीिार्थी / The Appellant 2. प्रत्यर्थी / The Respondent 3. संबंतिि आयकर आयुक्त / Concerned Pr. CIT 4. आयकर आयुक्त ( अिीि ) / The CIT(A)- 5. तिभागीय प्रतितिति , अतिकरण अिीिीय आयकर , कोिकािा/DR,ITAT, Kolkata, 6. गार्ड फाईि / Guard file. आदेशािुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अिीिीय अतिकरण ITAT, Kolkata Sr. No. Particulars Date Initials Person concerned 1 Drafted on 22.01.2025 Sr.PS 2 Draft placed before author Sr.PS 3 Draft proposed & placed before the second Member AM 4 Draft discussed/approved by Second Member AM 5 Approved Draft comes to the Sr.PS/PS Sr.PS 6 Kept for pronouncement on Sr.PS 7 File sent to the Bench Clerk Sr.PS 8 Date on which file goes to the Head Clerk 9 Date of dispatch of Order 10 Dictation Sheet is attached herewith No "