DEPUTY COMMISSIONER OF INCOME TAX, KOLKATA V. BHAWANI CONSTRUCTIONS PVT. LTD., HOWRAH

MA 19/KOL/2025

AI Insights

The case revolves around an appeal by the Deputy Commissioner of Income Tax (DCIT), Kolkata against Bhawani Construction Pvt. Ltd., concerning the assessment year 2021-22. The revenue's appeal was initially dismissed by the Income Tax Appellate Tribunal (ITAT) due to the tax effect being below Rs. 50 lakhs, as per the relief granted by the CIT(A). The revenue contended that the case fell under exception clauses of the CBDT Circular No.5/2024, which was not acknowledged in the Tribunal's earlier decision. The Tribunal, upon reviewing the materials and the CIT(A)'s decision, found no merit in the revenue's claim that the case fell under the specified exceptions, leading to the dismissal of the revenue's miscellaneous application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780569 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 28 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 08-10-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2021-2022
• Appeal Filed On: 10-12-2024
• Laws Referred To: CBDT Circular No.5/2024, CBDT Circular No.17 of 2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay; Tax effect
• Section: 133(6)

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA Before Shri Rajesh Kumar, Accountant Member and Shri Pradip Kumar Choubey, Judicial Member M.A. No.19/Kol/2025 (Arising out of I.T.A. No.1562/Kol/2024) Assessment Year: 2021-22 DCIT, Kolkata ……………………………. ……………..…..........……….Appellant vs. Bhawani Construction Pvt. Ltd.……...............………........……...…..…..Respondent 269, G. T. Road (North), Liluah, Howrah – 711204. [PAN: AABCB1996N] Appearances by: Shri Susanta Saha, Sr. DR, appeared on behalf of the appellant. Shri Miraj D. Shah, AR, appeared on behalf of the Respondent. Date of concluding the hearing : September 19, 2025 Date of pronouncing the order : October 08, 2025 ORDER Per Pradip Kumar Choubey, Judicial Member: The present miscellaneous application has been filed by the revenue submitting that the Hon’ble Tribunal in its order dated 13.09.2024 in ITA No.1562/Kol/2024 had dismissed the appeal of the revenue by observing that tax effect by virtue of relief granted by the ld. CIT(A) is less than Rs.50 lakhs ignoring the fact that the instant case falls in the exception clauses mentioned under clause (h) of section 3.1 of the CBDT’s Circular No.5/2024 dated 15.03.2024. 2. The ld. Counsel for the assessee in this respect has submits that the ld. CIT(A) passed order in favour of the assessee after going over the entire facts of the case and there was nothing mentioned that the assessee company is a shell company so the order passed by the ITAT Printed from counselvise.com M.A. No.19/Kol/2025 Bhawani Construction Pvt. Ltd 2 does not fall in the exception clauses and the order of the ITAT needs not to be interfered. 3. Upon hearing the counsels of the respective parties and perusing the materials on record and going over the Tribunal’s order dated 13.09.2024, we find that the Tribunal vide its order dated 13.09.2024 has dismissed the appeal of the revenue by holding as under: 4. With the assistance of ld. Representatives, we have gone through the record carefully. As far as the issue regarding non-filing of an application for condonation of delay is concerned, we would have adjourned the hearing and provided one more opportunity to the Revenue, but at the threshold the tax effect by virtue of relief given by the ld. CIT(Appeals) is less than Rs.50 lakhs. Therefore, on that account, this appeal is not maintainable. There is no idea to devote energy of persuading the Revenue for filing an application for condonation of delay. This appeal is not maintainable simply for the reason that tax effect by virtue of relief granted by the ld. CIT(Appeals) is less than Rs.50 lakhs. It has not been demonstrated in the grounds of appeal as to how this issue falls in the exception clauses mentioned at serial no.10 of the CBDT Circular bearing No. 17 of 2019 issued on 8th August, 2019, therefore, this appeal is dismissed.” 4. We note that Hon’ble Members of the Tribunal has clearly held that it has not been demonstrated in the grounds of appeal as to how this issue fall in the exception clauses mentioned at serios no.10 of the CBDT Circular No.17 of 2019. We have gone through the impugned order and find that the ld. CIT(A) has allowed the appeal of the assessee holding thereby that there was a bona fide interest paid on the unsecured loans and the parties had also confirmed the transaction u/s 133(6) of the Act and all the transactions were made through banking channels and the assessee duly filed details such as bank account statement, audited financial statement and Income Tax acknowledgement. Keeping in view the order passed by the Hon’ble Printed from counselvise.com M.A. No.19/Kol/2025 Bhawani Construction Pvt. Ltd 3 Members and considering the facts of case, we do not find any merit of the revenue that this case falls under the exception clauses. 4. In the result, the miscellaneous application of the revenue is dismissed. Kolkata, the 8th October, 2025. Sd/- Sd/- [Rajesh Kumar] [Pradip Kumar Choubey] Accountant Member Judicial Member Dated: 08.10.2025. RS Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches Printed from counselvise.com "