DEPUTY COMMISSIONR OF INCOME TAX, CENTRAL CIRCLE - 3(2), KOLKATA, KOLKATA V. GODAVARI DEALCOM PRIVATE LIMITED, KOLKATA

ITA 1687/KOL/2024

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income Tax (Appeals) concerning the assessment year 2020-21. The appeal was initially considered to be time-barred, but upon review, it was found that the delay was due to administrative reasons and was thus condoned. However, the substantive issue arose from the monetary threshold set by the CBDT Circular No. 9/2024, which restricts appeals by the Revenue unless the tax effect exceeds Rs. 60,00,000. The tax effect in this case was Rs. 30,68,000, well below the threshold, leading to the dismissal of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474053 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUBHENDU DUTTA
• Assessee Lawyers: RAJEEVA KUMAR
• Keywords: Tax effect
• Section: 250

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No. 1687/KOL/2024 Assessment Year: 2020-21 DCIT, Central Circle, 3(2) Kolkata, Aaykar Bhavan Poorva, 110 Shantipally, West Bengal, Kolkata-700107 Vs Godavari Dealcom Private Limited AG-112, Suite No. 804 & 805, Salt Lake City, West Bengal, Kolkata-700091 (Appellant) (Respondent) PAN: AADCG3246N Present for: Appellant by : Shri Subhendu Dutta, CIT(DR) Respondent by : Shri Rajeeva Kumar, Advocate Date of Hearing : 22.01.2025 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 2020-21 dated 08.04.2024, which has been passed against the assessment order u/s 153A/143(3) of the Act, dated 30.03.2022. 2. The registry has mentioned that the appeal is barred by limitation of time by 63 days. However, the perusal of the record shows that the appeal order dated 08/04/2024, was received in the office of the Pr. CIT, Central-2, Kolkata on 07/05/2024 and the appeal has been filed on 09/08/2024. Thus, the delay is only of 34 Page | 2 ITA No. 1687/KOL/2024 Godavari Dealcom Private Limited;A.Y. 2020-21 days. However, a further perusal of the response of the Ld. AO to the Defect Notice issued by the registry shows that the Ld. AO has calculated the delay of 63 days. The sanction for filing the appeal has been granted on 06/08/2024, and the appeal was filed on 09/08/2024. Thus, the delay was caused due to administrative reason of late receipt of sanction on 06/08/2024, and therefore, the delay is condoned as the Ld. AO had sufficient cause for the delay and the appeal is taken up for adjudication. 3. After the hearing was concluded earlier on 17/10/2024, the assessee brought it to our attention on 07/01/2025 by written submission that the tax effect of ₹ 38,41,511 (including interest) falls significantly below the prescribed monetary limit for filing the appeal as per the CBDT Circular No. 9/2024 dated 17/09/2024 and, therefore, the Revenue’s appeal is not maintainable under the provision of the circular. Accordingly, the case was fixed for clarification. 4. 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. 30,68,000/- which is less than 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. 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 Ld. AR argued that this appeal is not maintainable. Page | 3 ITA No. 1687/KOL/2024 Godavari Dealcom Private Limited;A.Y. 2020-21 5. 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 soccer one never. 6. 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 | 4 ITA No. 1687/KOL/2024 Godavari Dealcom Private Limited;A.Y. 2020-21 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 "