SOMNATH DASBISWS, KOLKATA V. LYKIS LIMITED, KOLKAAT

ITA 1208/KOL/2023

AI Insights

This case involves an appeal by the Revenue against an order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was related to the assessment year 2015-16. The primary contention was regarding the tax effect of the disputed additions, which the Revenue argued exceeded the threshold for filing an appeal. However, it was later clarified that the actual tax effect was below the threshold. The ITAT dismissed the appeal based on the revised monetary limits set by the CBDT Circular No. 09/2024, which applies retrospectively to pending appeals.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705823 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH”, KOLKATA SHRI GEORGE MATHAN, JUDICIAL MEMBER SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No. 1208/KOL/2023 (Assessment Year 2015-16) DCIT, Circle 4(1), Kolkata, O/o Deputy Commissioner of Income Tax, Cir-4(1), Kolkata, 8th Floor, P-7, Chowringhee Square, Aayakar Bhawan, Kolkata – 700069 ……..…...…………….... Appellant vs. M/s Lykis Limited, 14, N S Road, Kolkata – 700001 [PAN: AABCG0155C] ................................. Respondent Appearances by: Assessee represented by : Jigar Mehta, AR Department represented by : Pradip Kumar Biswas, Addl. CIT, Sr. DR Date of concluding the hearing : 01.07.2025 Date of pronouncing the order : 03.07.2025 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER 1. In this case, the ITAT Registry has pointed out that there is a delay of 236 days which has been requested to be condoned as under: 2 ITA No. 1208/Kol/2023 Lykis Limited Considering the reasons given for the said delay, we hereby condone the delay and admit the appeal for adjudication. 2. This is Revenue’s appeal arising from the order u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”), passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, vide order dated 18.01.2023. 1.1 The Ld. AR has filed an initial objection regarding the computation of tax effect and has stated that the same is below the threshold limit for filing of appeals by the Revenue. The representation of the assessee may be extracted as under: “At the outset, Your Honour's attention is invited to the fact that the aforesaid appeal has been filed by the revenue against the order of the Ld. CIT(A) dated 18.01.2023 for AY 2015-16. Your Honour may note that the said matter has been fixed for hearing on 18.03.2025. In this regard, we wish to state that we have recently received a copy of Form 36 & Grounds of Appeal. On perusal of the Form 36, it is observed that the tax effect mentioned in Form 36 is Rs.62,83,488/-. However, the actual tax effect is in fact only Rs.58,13,889/-. In this regard, enclosing herewith the computation of tax effect along with relevant annexure, marked as Annexure \"A\". In this regard, we request Your Honour to kindly consider the aforesaid fact on records.” 1.2 On a previous date of hearing, the Ld. DR was requested to verify the tax effect in the case as it was mentioned by the Ld. AR that instead of Rs. 62,83,488/- the tax effect was actually Rs. 58,13,889/-. On the last date of hearing, the Ld. DR fairly mentioned that the tax effect was less than whatever was mentioned in Form 36. 2. It is seen, at the outset, that the tax effect on the disputed additions before us is less than Rs. 60 lakhs as prescribed in the CBDT’s latest Circular No. 09/2024 dated 17.09.2024 for filing appeals by the Revenue before this Tribunal. This fact is duly brought out in the assessee’s letter dated 05.03.2025 (supra). 2.1. The aforementioned CBDT’s circular prescribes that the revised 3 ITA No. 1208/Kol/2023 Lykis Limited monetary limits shall apply retrospectively to pending appeals as well. 3. In view of above stated position, the appeal of the Revenue is dismissed u/s 268A of the Act because of tax effect lower than the prescribed limits as per CBDT Circular No. 09/2024 (supra). 4. In case, at a later stage, it is found that this appeal is indeed covered under ‘exceptions’ then the department would be at liberty to move the ITAT with an MA for appropriate considerations. 5. In the result, the appeal filed by the Revenue is dismissed Order pronounced on 03.07.2025 Sd/- Sd/- (George Mathan) (Sanjay Awasthi) Judicial Member Accountant Member Dated: 03.07.2025 AK, Sr. P.S. Copy of the order forwarded to: 1. Lykis Limited 2. DCIT, Circle 4(1), Kolkata 3. Pr. CIT 4. CIT(A) 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches "