INCOME TAX OFFICER, WARD-3(1), KOLKATA V. INTIME VANIJYA PRIVATE LIMITED, KOLKATA

ITA 1684/KOL/2024

AI Insights

The case involves an appeal by the Income Tax Officer, Ward-3(1), Kolkata against Intime Vanijya Private Limited concerning an order from the National Faceless Appeal Centre, Delhi. The appeal was related to an addition of Rs. 25,80,000 made under section 68 of the Income-tax Act, 1961, which was later deleted by the CIT(A). The Revenue's appeal was found to be time-barred by 153 days, but the delay was condoned due to reasonable cause. However, following the CBDT Circular No.09 of 2024, which raised the monetary limit for filing appeals to Rs. 60 lakh, the tribunal dismissed the appeal as the tax effect was below this limit.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23958 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MADHUMITA DAS
• Keywords: Reasonable cause; Reassessment proceedings; Accommodation entries
• Section: 147; 153

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES “SMC”, KOLKATA BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.1684/KOL/2024 Assessment Year : 2013-14 ITO, Ward-3(1), Kolkata V/s Intime Vanijya Private Limited, Sapvai Bari Ram Krishna Sarani, Behala – 700 060 West Bengal PAN : AACCI0813Q Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal pertaining to Assessment Year 2013-14 at the instance of Revenue is directed against the order dated 09.01.2024 passed by National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (in short ‘the Act’) which in turn is arising out of Intimation Order dated 22.09.2021 passed u/s. 147 r.w.s.144B of the Act. 2. When the appeal was called for, none appeared on behalf of the respondent-assessee. I therefore proceed to dispose of the appeal with the able assistance from the ld. Departmental Representative. Assessee by : None Revenue by : Smt. Madhumita Das, Addl. CIT Date of hearing : 27.11.2024 Date of pronouncement : 06.02.2025 ITA No.1684/Kol/2024 Intime Vanijya Pvt. Ltd. 3. At the outset, Ld. Departmental Representative submitted that the appeal is time barred by 153 days before the Tribunal. He referred to the condonation petition filed by the Revenue and submitted that at the relevant time the department was under pressure looking over the matters of reassessment proceedings, Audit, Demand collection, etc. and therefore, prayed for condoning the delay. After going through the averments made in the condonation petition I find that there was ‘reasonable cause’ which prevented the Revenue in filing the appeal within the stipulated time. Therefore, the delay of 153 days in preferring the appeal before the Tribunal is condoned and proceed for adjudication of the appeal. 4. At the outset, I find the Revenue has filed the instant appeal against the order of ld. CIT(A) deleting the addition of Rs.25,80,000/- made by the AO u/s.68 of the Act on the ground that the transactions made by the assessee are not accommodation entries as alleged by the AO. The Ld. Departmental Representative (DR) could not controvert the fact that addition made by the AO is Rs 25.80 lakh and the disputed tax reported in Form 36 is Rs.7,97,220/- which is less than Rs.60.00 lakh. 5. The CBDT vide Circular No.09 of 2024 dated 17.09.2024 has increased the monetary limit for filing the appeal by the Revenue before the ITAT to Rs. 60 Lakhs. In the said circular, it is stated that in cases where the tax effect in the appeal to be filed before the Appellate Tribunal does not exceed Rs. 60.00 lakh appeals should not be filed. Thus, taking note of CBDT Circular No. 09 of 2024 dated 17.09.2024 and considering the fact that the tax ITA No.1684/Kol/2024 Intime Vanijya Pvt. Ltd. effect in the instant appeal is less than Rs. 60.00 lakh, the present appeal deserves to be dismissed as withdrawn / not maintainable. However, I make it clear that the issues raised in the instant appeal is left open to be examined in the appropriate proceedings, if arises, in future. At the same time, I also make it clear that if the appeal fall in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for recalling the order, if so advised. Accordingly, in the light of CBDT circular No. 09 of 2024 dated 17.09.2024, this appeal stands dismissed. 6. In the result, the appeal of the Revenue is dismissed. Order pronounced on this 06th day of February, 2025. - Sd/- (MANISH BORAD) ACCOUNTANT MEMBER पुणे/Pune; \u0001दनांक / Dated : 06th February, 2025 Satish आदेश क\u0002 \u0003ितिलिप अ\tेिषत / Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant. 2. \b\tयथ\u0007 / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण, “(SMC)” ब\u0010च, Kolkata/ DR, ITAT, “(SMC)” Bench, Kolkata. 5. गाड\u0014 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Assistant Registrar, ITAT, Kolkata "