INCOME TAX OFFICER, WARD - 12(1), KOLKATA V. MERCURY SOLUTIONS LTD, KOLKATA

ITA 1530/KOL/2024

AI Insights

The case involves an appeal by the Income Tax Officer, Ward-12(1), Kolkata against Mercury Solutions Ltd., concerning an order passed by the ADDL/JCIT(A)-Bhopal under section 250 of the Income Tax Act, 1961, for the assessment year 2017-18. The appeal was based on an intimation order under section 143(1) dated 27.09.2018. The primary contention was the tax effect resulting from the first appellate authority's relief, which amounted to Rs. 54,36,470, below the Rs. 60,00,000 threshold set by the CBDT for filing appeals. The court dismissed the appeal due to the low tax effect and the inability of the Revenue to demonstrate any exceptions to the instruction.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46790 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 250; 143(1)

Judgement Text

"आयकर अपीलीय अधिकरण कोलकाता 'सी' पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘C’ BENCH, KOLKATA श्री जॉजज माथान, न्याधयक सदस्य एवं श्री राक ेश धमश्रा, लेखा सदस्य क े समक्ष Before SHRI GEORGE MATHAN, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER I.T.A. No.: 1530/KOL/2024 Assessment Year: 2017-18 Income Tax Officer, Ward-12(1), Kolkata Vs. Mercury Solutions Ltd. (Appellant) (Respondent) PAN: AADCM7075M Appearances: Department represented by : Rama Choudhary, JCIT, Sr. DR. Assessee represented by : Susheel Gupta, AR. Date of concluding the hearing : March 4th, 2025 Date of pronouncing the order : March 4th, 2025 ORDER PER BENCH: This appeal filed by the Revenue is against the order of the ADDL/JCIT(A)-Bhopal [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2017-18 dated 29.05.2024, which has been passed against the intimation order u/s 143(1) of the Act, dated 27.09.2018. 2. It is pertinent to note that the tax effect by virtue of relief given by the first appellate authority is less than Rs. 60,00,000/- as mentioned Page | 2 I.T.A. No.: 1530/KOL/2024 Assessment Year: 2017-18 Mercury Solutions Ltd. in Col. No. 10 of Form No. 36. The Ld. AR objected to the admission of the appeal as the tax effect is stated to be Rs. 54,36,470/- which is below Rs. 60,00,000/-. As per the CBDT’s Instruction No. 9 of 2024 issued on 17th September, 2024, the CBDT has directed its subordinate authorities not to file appeal against the order of the Ld. CIT(A) before the Tribunal if the tax effect by virtue of relief given by the Ld. CIT(A) is less than Rs. 60,00,000/-. Such order could only be challenged if it comes within the exceptions provided in the Instruction. Ld. Sr. DR could not rebut this fact nor could he demonstrate how the appeal was covered under any of the exceptions; therefore, this appeal is not maintainable. 3. On due consideration of the above facts and circumstances, we dismiss this appeal of the Revenue on account of low tax effect. However, in case on re-verification of the facts at the end of the Ld. Assessing Officer, it emerges that the tax effect is more than the limit for filing the appeal or this case falls under any of the exceptions provided in the instruction, then the Revenue will be at liberty to file a Miscellaneous Application for recall of this order and revival of the appeal. Such an application should be filed within the time limit provided in the Act. 4. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on 4th March, 2025. Sd/- Sd/- [George Mathan] [Rakesh Mishra] Judicial Member Accountant Member Dated: 04.03.2025 Bidhan (P.S.) Page | 3 I.T.A. No.: 1530/KOL/2024 Assessment Year: 2017-18 Mercury Solutions Ltd. Copy of the order forwarded to: 1. Income Tax Officer, Ward-12(1), Kolkata. 2. Mercury Solutions Ltd., 15 Kusum, 11 Gurusaday Road, Kolkata, West Bengal, 700019. 3. ADDL/JCIT(A)-Bhopal. 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata. 6. Guard File. //True copy // By order Assistant Registrar ITAT, Kolkata Benches Kolkata "