INCOME TAX OFFICER, KOLKATA V. .SARASWATI CONCLAVE PVT LTD, KOLKATA

ITA 956/KOL/2024

AI Insights

This case involves an appeal by the Income Tax Department against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi, concerning the assessment year 2012-13. The Department challenged the order dated 09.02.2024. However, the assessee's counsel pointed out that the CBDT had issued a circular increasing the monetary limits for filing appeals to reduce litigation. The revised limits specified that appeals involving tax effects below Rs. 60,00,000 were not to be filed. The Tribunal noted that the tax effect in this case was below the stipulated limit and dismissed the appeal, emphasizing adherence to the Department's policy decision as outlined in the circular.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 469722 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Laws Referred To: CBDT Circular No. 9/2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ ‘सी’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH: KOLKATA Įी राजेश क ुमार, लेखा सदèय एवं Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय क े सम¢ [Before Shri Rajesh Kumar, Accountant Member & Shri Pradip Kumar Choubey,Judicial Member] I.T.A. No. 956/Kol/2024 Assessment Year: 2012-13 ITO, Kolkata Vs. Saraswati Conclave Pvt. Ltd. (PAN: AADCD 0603 Q) Appellant / (अपीलाथȸ) Respondent / (Ĥ×यथȸ) Date of Hearing / सुनवाई कȧ Ǔतͬथ 10.12.2024 Date of Pronouncement / आदेश उɮघोषणा कȧ Ǔतͬथ 19.12.2024 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri Giridhar Dhelia, Advocate For the Revenue / राजèव कȧ ओर से Shri Raja Sengupta, Sr. DR ORDER/ आदेश Per Shri Pradip Kumar Choubey, JM: This is an appeal preferred by the revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as ‘ Ld. CIT(A)’] dated 09.02.2024 for the assessment year 2012-13. 2. At the outset, the Ld. Counsel of the assessee submitted that the CBDT has issued a Circular No. 9/2024 dated 17.09.2024, whereby the monetary limits for filing of appeal 2 ITA No.956/Kol/2024 AY: 2012-13 Saraswati Conclave Pvt. Ltd.. by the Department before Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court have been increased as a measure for reducing Litigation. The revised monetary limits laid down in para-2 of this Circular are as follows: 1. Before Appellate Tribunal Rs. 60,00,000/- 2. Before High Court Rs. 2,00,00,000/- 3. Before Supreme Court Rs. 5,00,00,000/- 3. In the present case, the tax effect by the revenue is less than Rs.60,00,000/-. We note that this appeal had been filed by the revenue on 30.04.2024 and since the tax effect is within the monetary limit for filing appeals before Tribunal, in view of the Circular of CBDT (supra) at the first place, Revenue should not have preferred this appeal. In view of the above, we hold that the appeal filed by the Department, against the impugned order of the Ld. CIT(A), is contrary to the policy decision of the Department and as such the appeal filed by the Department is dismissed in limine. 4. As a matter of caution, we observe that if the Revenue finds at a later point of time that the tax effect in the appeal is more than Rs.60 lakhs or despite low tax effect, the appeal of the revenue is maintainable, the revenue is at liberty to move this Tribunal for recalling of this order. In the result, appeal of the revenue is dismissed. Order is pronounced in the open court on 19th December, 2024 Sd/- Sd/- (Rajesh Kumar/राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 19th December, 2024 SM, Sr. PS 3 ITA No.956/Kol/2024 AY: 2012-13 Saraswati Conclave Pvt. Ltd.. Copy of the order forwarded to: 1. Appellant- ITO, Kolkata 2. Respondent – Saraswati Conclave Pvt. Ltd. , Block-B, Ground Floor, 8, Lake Town, Kolkata-700089 3. Ld. CIT(A)-NFAC, Delhi 4. PCIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "