ITO, KOLKATA V. NAVIN PURI, KOLKATA

MA 47/KOL/2025

AI Insights

The case involves a Miscellaneous Application by the Revenue against the order of the Income Tax Appellate Tribunal, which had dismissed the Revenue's appeal concerning the tax effect on the issue of penny stocks related to M/s Dignity Logistic Services Pvt. Ltd. and M/s Little Star Commodities Pvt. Ltd. The Revenue contended that the Tribunal erred in dismissing the appeal without considering the exclusion of penny stocks from the monetary limits prescribed by the CBDT circular. The Tribunal, upon reviewing the submissions and the relevant CBDT circular, acknowledged the oversight and recalled its earlier order, directing the appeal to be heard on its merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705595 (ITAT-KOLKATA)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 04-07-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Assessment Year: 2015-2016
• Laws Referred To: CBDT Circular on monetary limits for filing appeals
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S.B. CHAKRABORTHY
• Assessee Lawyers: ANIL KOCHAR
• Keywords: Tax effect

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JM MA No. 47/KOL/2025 (Arising in ITA No. 1948/KOL/2024 for A.Y. 2015-16) ITO, Wd-36(1) Aaykar Bhavan Poorva, Kolkata-700107, West Bengal Vs. Navin Puri, 86, Shop No.1/36, 1 st Floor, Canning Street, Kolkata-700001, West Bengal (Applicant) (Respondent) PAN No. AFOPP 5599 N Assessee by : Shri Anil Kochar, AR Revenue by : Shri S.B. Chakraborthy, DR Date of hearing: 04.07.2025 Date of pronouncement: 04.07.2025 O R D E R This is a Miscealleneous Application filed by the Revenue against the order of the Tribunal in ITA No. 1948/KOL/2024 for A.Y. 2015-16 in the case of the assessee. 02. In the MA, the Revenue has challenged the action of the Tribunal in dismissing the appeal of the Revenue on account of tax effect. It was the submission that the issue in the appeal was in regard to penny stock in respect of M/s Dignity Logistic Services Pvt. Ltd. and M/s Little Star Commodities Pvt. Ltd. It was the submission that the issue in regard to penny stock were provided in the exclusion in the Circular issued by the CBDT. It was the prayer that the ld. CIT (A) had decided the issue of penny stock on merits in favour of the assessee which was challenged in appeal by the Revenue. It was the submission that in view of the exclusion provided in Circular in respect of monetary limits issued by the CBDT, the order of the Tribunal suffers from mistake and the appeal of the Revenue was not liable to be dismissed on account of tax effect. It was the prayer that the order of the Tribunal was recalled and the appeal heard on merits. Page | 2 MA No. 47/KOL/2025 Navin Puri; A.Y. 2015-16 03. In reply, the ld. AR submitted that tax effect in the appeal was less than the prescribed limit. It was the submission that the order of the Tribunal was correct and no interference was called for. 04. I have heard the rival submission. Admittedly, the issue on merits is the appeal of Revenue in respect of penny stock. As the issue has been decided by the ld. CIT (A) on merits and the issue of penny stock does fall within the exclusion in the circular issued by CBDT in support of monetary limit for filing the appeal before the Tribunal, I find that there is an error in the order of the Tribunal. Consequently, the order of the Tribunal in ITA No. 1948/KOL/2024 dated 16th October, 2024 for the A.Y. 2015-16, in the case of the assessee, stands recalled. The registry is directed to post the appeal for hearing in regular course. 05. In the result, the MA filed by the Revenue stands allowed. Order pronounced in the open court on 04.07.2025. Sd/- (GEORGE MATHAN) (JUDICIAL MEMBER) Kolkata, Dated: 04.07.2025 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata "