ITO, Ward-4(1), Kolkata V. Madhusudan Barter Pvt. Ltd., Kolkata

ITA 61/KOL/2021

AI Insights

The case involves an appeal by the Income Tax Officer, Ward-4(1), Kolkata against Madhusudan Barter Private Limited, concerning the assessment year 2012-13. The appeal was directed against the order of the Commissioner of Income Tax (Appeals)-7, Kolkata. The primary issue was the tax effect on the disputed additions, which was found to be less than Rs. 50 lakhs, the threshold set by the CBDT's Circular No.17/2019. The Income Tax Appellate Tribunal, Kolkata, decided to dismiss the appeal based on the monetary limits prescribed for filing appeals in tax matters.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301056 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 01-08-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 22-02-2021
• Other Referred Cases: Commissioner of Customs vs. Indian Oil Corporation Ltd
• Laws Referred To: CBDT Circular No.17/2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCH ‘C’, KOLKATA BEFORE SHRI RAJESH KUMAR, HON’BLE ACCOUNTANT MEMBER AND SHRI SONJOY SARMA, HON’BLE JUDICIAL MEMBER ITA No.61/Kol/2021 Assessment Year: 2012-13 ITO, Ward-4(1), Kolkata vs Madhusudan Barter Private Limited 14, N.S. Road, 1 st Floor, Kolkata- 700001. PAN: AAGCM 5938 E (Appellant) (Respondent) Present for: Assessee by : Shri Soumitra Choudhury, Advocate Revenue by : Shri Sunil Kumar Agarwala, CIT, DR Date of Hearing : 02.08.2023 Date of Pronouncement : 03.08.2023 O R D E R PER SONJOY SARMA, JM: The present appeal filed by the Revenue is directed against the order dated 22.09.2020 of the Commissioner of Income Tax (Appeals)-7, Kolkata [hereinafter referred to as the ‘CIT(A)]. 2 It is seen, at the outset, that the tax effect on the disputed additions before us is less than Rs.50 lacs as the prescribed in the CBDT’s latest Circular No.17/2019 dated 08.08.2019. It will be pertinent to reproduce the relevant portion of the said Circular as follows:- “2 . As a step toward further management of litigation, it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows: S.No. Appeals/SLPs in Income-tax matters Monetary Limit (Rs.) 1. Before Appellate Tribunal 50,00,000 2. Before High Court 1,00,00,000 ITA No.61/Kol/2021 Madhusudan Barter Private Limited A.Y. 2012-13 2 3. Before Supreme Court 2,00,00,000 2.1 We find that intention behind the Circular No.17/2019 dated 08.08.2019 needs to be understood in the following perspective:- 3. Further, with a view to provide parity in filing of appeals in scenarios where separate order is passed by higher appellate authorities for each assessment year vis-à-vis where composite order for more than one assessment year is passed, para 5 of the circular is substituted by the following para: “5. The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. if, the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit specified in para 3. No. appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessments year, no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. In case where a composite order/judgment involves more than one assessee, each assessee shall be dealt with separately.” 2.2. On perusal of the Circular No.17/2019 dated 08.08.2019 and the materials available on record, it reveals that this circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals as well. Hon’ble apex court in Commissioner of Customs vs. Indian Oil Corporation Ltd reported in 267 ITR 272 (SC) has settled the law that CBDT’s circulars are very much binding on revenue authorities. 3. The ld. DR has also fairly stated that tax effect involved in appeal is less than the prescribed limit. ITA No.61/Kol/2021 Madhusudan Barter Private Limited A.Y. 2012-13 3 4. In view of above stated position, the appeal of the Revenue is dismissed because of low tax effect than the prescribed limits as per CBDT Circular No.17/2019 (supra). Order pronounced in the open court on 03.08.2023 Sd/- Sd/- (RAJESH KUMAR) (SONJOY SARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Kolkata: 03.08.2023 Biswajit, Sr. P.S. Copy to: 1. The Appellant: ITO, WARD-4(1), Kolkata 2. The Respondent: Madhusudan Barter Private Limited 3. The CIT, 4. The CIT (A) 5. The DR . //True Copy// [ By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata