Commissioner Of Income Tax,Kolkata – Iv, Kolkata v. Vandana Commercials (P) Ltd

ITA/86/2010 IN THE HIGH COURT AT CALCUTTASpecial Jurisdiction (Income Tax)ORIGINAL SIDE COMMISSIONER OF INCOME TAX,KOLKATA – IV, KOLKATA -Versus- VANDANA COMMERCIALS (P) LTD. Appearance:Mr. Soumen Bhattacharya, Adv.. . . for the appellant. BEFORE: The Hon’ble JUSTICE T.S. SIVAGNANAM -And- The Hon’ble JUSTICE SUPRATIM BHATTACHARYA Date : 16[th] September, 2022. The Court : This appeal filed by the revenue underSection 260A of the Income Tax Act, is directed against theorder dated 9[th] October, 2009 passed by the Income TaxAppellate Tribunal, “C” Bench, Kolkata (the Tribunal) in ITANo.531/Kol/2009 for the assessment year 2002-03. The appeal was admitted on the following substantial question of law: (i)Whether, on the facts and in the circumstancesof the case, the Income-tax Appellate Tribunalis correct in deleting the additionsof Rs.1,76,23,687/- and Rs.20,05,000/- respectively, in respect of sundry creditorsand share application money appearing in thebalance sheet of the assessee, which were notexplained to the satisfaction of the AssessingOfficer and were deleted by the Commissionerof Income Tax (Appeals) by admitting freshevidence in violation of Rule 46A of theIncome-tax Rules, 1927?” We have heard Mr. Soumen Bhattacharyya, learnedstanding counsel for the appellant/department. From the substantial question of law which has beenadmitted it is seen that the tax effect involved in this appealis much less than the threshold limit fixed by the Circularissued by the CBDT. Therefore, the revenue cannot pursue thisappeal.Accordingly, the appeal (ITA/86/2010) stands disposedof on the ground of low tax effect and the substantial questionof law is left open. (SUPRATIM BHATTACHARYA, J.)