INCOME TAX OFFICER WARD-4(3),KOLKATA, AAYAKAR BHAWAN CHOWRINGHEE SQUARE V. ABHA FUELS PRIVATE LIMITED, N S ROAD KOLKATA

ITA 1023/KOL/2023

AI Insights

The case involves an appeal by the Income Tax Officer against the order of the Commissioner of Income Tax (Appeals), which had provided relief to Abha Fuels Private Limited for the Assessment Year 2012-13. The appeal was dismissed by the Income Tax Appellate Tribunal, Kolkata, primarily on the grounds of the low tax effect, which was below Rs. 60,00,000. The Tribunal referenced the CBDT's Instruction No. 9 of 2024, which restricts appeals by the Revenue under similar circumstances unless exceptions apply. The Tribunal also mentioned that if future assessments reveal a higher tax effect or if the case falls under any exceptions, the Revenue could file a Miscellaneous Application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 36221 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 250

Judgement Text

"आयकर अपीलीय अधिकरण कोलकाता 'ए' पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘A’ 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.: 1023/KOL/2023 Assessment Year: 2012-13 Income Tax Officer Ward-4(3), Kolkata Vs. Abha Fuels Private Limited (Appellant) (Respondent) PAN: AACCA1925B Appearances: Department represented by : Prabhakar Prakash Ranjan, Addl. CIT. Assessee represented by : None. 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 Commissioner of Income Tax (Appeals) [hereinafter referred to as Ld. 'CIT(A)']-NFAC, Delhi passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2012-13 dated 11.07.2023, which has been passed against the order u/s 143(3)/254 of the Act, dated 27.09.2021. 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.: 1023/KOL/2023 Assessment Year: 2012-13 Abha Fuels Private Limited. 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. 58,40,000/- 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.: 1023/KOL/2023 Assessment Year: 2012-13 Abha Fuels Private Limited. Copy of the order forwarded to: 1. Income Tax Officer Ward-4(3), Kolkata. 2. Abha Fuels Private Limited, Room No 167, 33/1 N.S Road, Kolkata, West Bengal, 700001. 3. CIT(A)-NFAC, Delhi. 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata. 6. Guard File. //True copy // By order Assistant Registrar ITAT, Kolkata Benches Kolkata "