Commissioner Of Income Tax,Central-I, Kolkata v. M/S. Hooghly Mills Companylimited

ITA/189/2009 IN THE HIGH COURT AT CALCUTTASPECIAL JURISDICTION (INCOME TAX)ORIGINAL SIDE COMMISSIONER OF INCOME TAX,CENTRAL-I, KOLKATA -Versus- M/S. HOOGHLY MILLS COMPANYLIMITED BEFORE :THE HON’BLE JUSTICE T.S. SIVAGNANAMAndTHE HON’BLE JUSTICE HIRANMAY BHATTACHARYYADate : 9[th ]February, 2023 Appearance :Mr. Soumen Bhattacharyya, Adv.…for the appellant. Mr. Asim Chowdhury, Adv.Mr. Soham Sen, Adv.…for the respondent. The Court : This appeal filed by the revenue underSection 260A of the Income Tax Act, 1961 (the ‘Act’ forbrevity) is directed against the order dated 6[th] March, 2009passed by the Income Tax Appellate Tribunal, “A” Bench, Kolkata(the Tribunal) in ITA No.2139/Kol/2008 for the assessment year2005-06. The revenue has raised the following substantialquestion of law for consideration: (i)Whether on the facts and in the circumstancesof the case the Income Tax Appellate Tribunalwas justified in directing the disallowance onaccount of gratuity payable to employeesamounting to Rs.1,68,90,760/- ? We have heard Mr. Soumen Bhattacharyya, leaned standingcounsel appearing for the appellant/revenue and Mr. AsimChowdhury, learned Advocate assisted by Mr. Soham Sen, learnedAdvocate appearing for the respondent/assessee. As could be seen from the substantial question of lawwhich has been raised, the tax effect in the instant case iswell below the threshold limit of Rs.1 crore to enable therevenue to pursue this appeal before this Court. Therefore, the appeal (ITA/189/2009) stands disposed ofon the ground of low tax effect and the substantial question oflaw is left open. (T.S. SIVAGNANAM, J.) (HIRANMAY BHATTACHARYYA, J.) A/s./K.Banerjee