Principal Commissioner Ofincome Tax-2, Kolkata v. M/S. Tibute Trading And Financeltd

ITAT/212/2022IA No.GA/1/2022GA/2/2022 IN THE HIGH COURT AT CALCUTTASPECIAL JURISDICTION (INCOME TAX)ORIGINAL SIDE PRINCIPAL COMMISSIONER OFINCOME TAX-2, KOLKATA -Versus- M/S. TIBUTE TRADING AND FINANCELTD. BEFORE :THE HON’BLE JUSTICE T.S. SIVAGNANAMAndTHE HON’BLE JUSTICE HIRANMAY BHATTACHARYYADate : 6[th ]February, 2023 Appearance :Mr. Prithu Dudheria, Adv.…for the appellant. Ms. Tanvi Luhariwala, Adv.Mr. Rites Goel, Adv.Mr. Kailash Dhanuka, Adv.…for the respondent. The Court : We have heard Mr. Prithu Dudheria, learnedstanding counsel for the appellant/revenue and Ms. TanviLuhariwala, assisted by Mr. Rites Goes and Mr. Kailash Dhanuka,learned Advocates for the respondent/assessee.There is a delay of 945 days in filing the appeal. Wehave perused the affidavit filed in support of the application for condonation of delay. Though there is no properexplanation for delay, since this appeal has been filed underSection 260A of the Income Tax Act, 1961, we are inclined toconsider as to whether any substantial question of law arisesfor consideration in this appeal. Hence, we exercisediscretion and condone the delay of 945 days in preferring theappeal. Accordingly, the application for condonation of delay(IA No.GA/1/2022) is allowed and the delay in filing the appealis condoned. This appeal filed by the revenue under Section 260A ofthe Income Tax Act, 1961 (the ‘Act’ for brevity) is directedagainst the order dated 28[th] August, 2019 passed by the IncomeTax Appellate Tribunal, “A” Bench, Kolkata (the Tribunal) inITA No.1506/Kol/2019 for the assessment year 2015-16. The revenue has raised the following substantial questions of law for consideration: (i)Whether on the facts and in the circumstancesof the case the Learned Income Tax AppellateTribunal has erred in law in dismissing theappeal of the revenue on the Ground of TaxEffect, in view of the CBDT Circular No.3 of2018 dated 11.07.2018 and CBDT Circular No.23of 2019 F. No.279/MISC/m-93/2018-ITJ(Pt.),dated 06.09.2019, has clarified that appealsmay be filed on merits as an exception to said circular revised monetary limits, so mentionedin Circular No.17/2019 is applicable to allpending appeals. As per these circulars allthe revenue appeals filed before the ITAT,having tax effect of less thatn Rs.50,00,000/-have to be treated as withdrawn, without goinginto the merits of the case ? We have heard Mr. Prithu Dudheria, learned counsel forthe appellant and Ms. Tanvi Luhariwala, learned advocate forthe respondent/assessee. The learned Tribunal by the impugned order dismissedthe appeal filed by the revenue on the ground that it is belowthe monetary limit fixed by the CBDT for filing appeals by therevenue. The contention of the revenue before us is by placingreliance upon a Circular No.23 of 2019 dated 6[th] September,2019. The said circular would not be of any assistance to thecase of the revenue as the appeal filed before the Tribunal wasdismissed on the ground of low tax effect by order dated 28[th]August, 2019. On the said date, the Circular which was invogue is dated 20[th] August, 2019 which had reiterated that theearlier Circular No.17 of 2019 dated 20[th] August, 2019relaxing/revising the monetary limit for filing appeal beforethe Tribunal to Rs.50 lakhs would be applicable to all pendingappeals before various forums. Thus, the learned Tribunal took note of this aspect anddismissed the appeal and we find that there is no ground tointerfere with the order passed by the learned Tribunal. Accordingly, the appeal filed by the revenue(ITAT/212/2022) is dismissed and the substantial question oflaw is answered against the revenue.Consequently, the connected application for stay (IANo.GA/2/2022) also stands closed. (T.S. SIVAGNANAM, J.) (HIRANMAY BHATTACHARYYA, J.) A/s./S.Das