Principal Commissioner Of Income Tax-2, Kolkata v. Apex Enterprises (I) Limited

ITAT/208/2017IA NO: GA/2/2017(Old No.GA/1809/2017)IN THE HIGH COURT AT CALCUTTASPECIAL JURISDICTION (INCOME TAX)ORIGINAL SIDE PRINCIPAL COMMISSIONER OF INCOME TAX-2, KOLKATAVERSUSAPEX ENTERPRISES (I) LIMITED BEFORE : THE HON’BLE JUSTICE T.S. SIVAGNANAM AndTHE HON’BLE JUSTICE HIRANMAY BHATTACHARYYADate : 7[th] March, 2021 Appearance:- Mr. S.N. Dutta, Adv. Mr. Soumen Bhattacharya, Adv.… For AppellantMr. R.K. Murarka, Adv. Ms. Sutapa Roychowdhury, Adv.Ms. Aratrika Roy, Adv. … For Respondent The Court : This appeal by the revenue filed under Section 260A of the Income Tax Act, 1961 (the Act, for brevity) is directed againstthe composite order dated 18[th] March, 2016, passed by the IncomeTax Appellate Tribunal, “A” Bench, Kolkata (Tribunal) in ITANo.1796/Kol/2008 and ITA No.285/Kol/2008 for assessment year2002-03. The revenue has raised the following questions of law forconsideration :- I.Whether on the facts and in the circumstances of the case, theLearned Tribunal erred in facts as well as in law in holding thatthe principal business of the assessee is granting of loans andnot trading in shares and therefore explanation to section 73 of the Income Tax Act will not apply in the facts of the instantcase? II.Whether on the facts and in the circumstances of the case, theLearned Tribunal erred in law and in facts in dismissing theappeal filed by the revenue in not treating the interest ofRs.8,40,00,000/- receivable by the assessee for the Assessmentyear 2002-03 as income following the mercantile system ofaccounting when interest payable by the assessee has beenclaimed and allowed under the system on accrual basis and noton actual basis? We have heard Mr. S.N. Dutta, learned standing Counselappearing for the appellant and Mr. R.K. Murarka, learned Counselappearing for the respondent/assessee. The appellant department has given instructions to the learnedstanding Counsel for the appellant that this appeal is not beingpursued by the revenue on account of low tax effect. The appeal stands dismissed on the ground of low tax effect andthe substantial questions of law are left open. With the dismissal of the appeal, the application for stay, beingIA No. GA/2/2017(Old No.GA/1809/2017), stands closed. (T.S. SIVAGNANAM, J.) (HIRANMAY BHATTACHARYYA, J.)