PRINCIPAL COMMISSIONER OF INCOME TAX-1 KOLKATA V. M/S WEST BENGAL STATE ELECTRICITY TRANSMISSION CO LTD

ITAT/46/2021

AI Insights

The case involves an appeal by the Principal Commissioner of Income Tax-1, Kolkata against M/S. West Bengal State Electricity Transmission Co. Ltd., concerning an order passed by the Income Tax Appellate Tribunal, 'A' Bench, Kolkata. The appeal was directed against the tribunal's decision which quashed a revisional order under section 263 of the Income Tax Act, 1961, passed by the Commissioner of Income Tax. The revenue sought to challenge the tribunal's reliance on a previous order, which had been the subject of an earlier appeal dismissed by the High Court. The court allowed the condonation of a 328-day delay in filing the appeal, citing an extension of the period of limitation by the Supreme Court. However, upon reviewing the substantive issues, the court upheld the tribunal's decision based on the precedent set in the earlier dismissed appeal.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 670475 (HC-CALCUTTA)
• Appeal Type: Others
• Pronouncement Date: 12-04-2022
• Assessment Year: misc
• Other Referred Cases: ITA No.1005(Kol) of 2013, ITAT No.155/2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: J P KHAITAN; PRANIT BAG; ANUJ MISHRA
• Assessee Lawyers: VIPUL KUNDALIA; ANURAG ROY
• Keywords: Audit objection; Condonation of delay; Income Tax; Revisional Order
• Section: 143(3); 263; 260A

Judgement Text

"OD-10 ITAT/46/2021 IA No.GA/1/2021 IA No.GA/2/2021 IN THE HIGH COURT AT CALCUTTA Special Jurisdiction (Income Tax) ORIGINAL SIDE PRINCIPAL COMMISSIONER OF INCOME TAX-1, KOLKATA -Versus- M/S. WEST BENGAL STATE ELECTRICITY TRANSMISSION CO. LTD. Appearance: Mr. Vipul Kundalia, Adv. Mr. Anurag Roy, Adv. ...for the appellant. Mr. J. P. Khaitan, Sr. Adv. Mr. Pranit Bag, Adv. Mr. Anuj Mishra, Adv. ...for the respondent. BEFORE: The Hon’ble JUSTICE T.S. SIVAGNANAM -And- The Hon’ble JUSTICE HIRANMAY BHATTACHARYYA Date : 12th April, 2022. The Court : We have heard Mr. Vipul Kumdalia, learned standing counsel assisted by Mr. Anurag Roy, learned Advocate appearing for the appellant/revenue and Mr. J. P. Khaitan, learned Senior Counsel assisted by Mr. Pranit Bag and Mr. Anuj Mishra, learned Advocates for the respondent. There is a delay of 328 days in filing the appeal. On perusal of the relevant dates we find that the appellant/revenue would be entitled to the benefit of the order passed by the 2 Hon’ble Supreme Court extending the period of limitation for filing of appeal under various enactments. For such reasons, the application for condonation of delay (IA No.GA/1/2021) is allowed and the delay in filing the appeal is condoned. Re: ITAT/46/2021: This appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 (the ‘Act’ in brevity) is directed against the order dated 18th December, 2019 passed by the Income Tax Appellate Tribunal, “A” Bench, Kolkata (the ‘Tribunal’ in short) ITA No.1261/Kol/2018 for the assessment year 2008-09. The revenue has framed for the following substantial questions of law for consideration: “a) Whether on the facts and circumstances of the case the Learned Income Tax Appellate Tribunal was justified in law confirming the Order of the Commissioner of Income Tax (Appeal) who relied the order passed by the Tribunal in ITA No.1005(Kol) of 2013 but Learned Tribunal ignoring the fact that the Department has already filed appeal before the Hon’ble Court against the said order ? b) Whether on the facts and circumstances of the case the Learned Income Tax Appellate Tribunal failed to appreciate that the case involved substantial amount of revenue as well as audit objection ? c) Whether on the facts and circumstances of the case the Learned Income Tax Appellate Tribunal was justified in law in quashing the revisional order under section 263 of the Act passed by Commissioner of Income Tax ?” We have heard Mr. Vipul Kundalia, learned standing counsel for the appellant/revenue. 3 The order impugned in this appeal passed by the tribunal arises out of an order of assessment passed by the Deputy Commissioner of Income Tax, Circle-2, Kolkata dated 3rd March, 2014 under Section 263 read with Section 143(3) of the Act. As against the order passed by the Commissioner under Section 263 of the Act, the matter travelled to the tribunal and thereafter before this Court in ITAT No.155/2017. By judgment dated 13th December, 2021 the appeal filed by the revenue was dismissed and the substantial questions of law were answered against the revenue. The present proceedings being a sequel to the order passed under Section 263 has to be necessarily rejected in the light of the order in ITAT/155/2017. For the above reasons, the appeal filed by the revenue (ITAT/46/2021) is dismissed and the substantial questions of law are answered against the revenue. Consequently, the connected application for stay IA No.GA/2/2021 stands closed. (T.S. SIVAGNANAM, J.) (HIRANMAY BHATTACHARYYA, J.) S.Pal/As. "