The Commissioner Of Income Tax, Ii, Kolkata v. M/S. Nagreeka Exports Limited

OD–1 IN THE HIGH COURT AT CALCUTTASPECIAL JURISDICTION (INCOME TAX)ORIGINAL SIDE ITA/23/2011 THE COMMISSIONER OF INCOME TAX, II, KOLKATAVS.M/s. NAGREEKA EXPORTS LIMITED BEFORE :THE HON’BLE JUSTICE T.S. SIVAGNANAMAndTHE HON’BLE JUSTICE HIRANMAY BHATTACHARYYADate : 1[st] March, 2023 Appearance :Mr. Soumen Bhattacharjee, Adv.…for appellant The Court : - This appeal has been filed by the revenue under Section 260A ofthe Income Tax Act, 1961 (the Act) is directed against the order dated 23.4.2010 passedby the Income Tax Appellate Tribunal “C” Bench, Kolkata in I.T.A. No. 89/Kol/2009relating to the Assessment Year 2003-2004. The appeal was admitted on 22.12.2010 on the following substantial questions of law :- i)Whether on the facts and in the circumstances of the case, the LearnedIncome Tax Appellate Tribunal was justified in law in directing theAssessing Officer to recompute the deduction under Section 80HHC of theIncome Tax Act, 1961 by excluding net interest as computed by the co-ordinate Bench in the case of M/S Opal International-vs-ACIT ?Income Tax Appellate Tribunal was justified in law in directing theAssessing Officer to recompute the deduction under Section 80HHC of theIncome Tax Act, 1961 by excluding net interest as computed by the co-ordinate Bench in the case of M/S Opal International-vs-ACIT ?ii)Whether on the facts and in the circumstances of the case, the LearnedIncome Tax Appellate Tribunal, Kolkata erred in allowing interest incomeof Rs.15,26,360/- from fixed deposit in bank as income from Business ?Income Tax Appellate Tribunal, Kolkata erred in allowing interest incomeof Rs.15,26,360/- from fixed deposit in bank as income from Business ? It is submitted by the learned standing Counsel for the appellant that tax effect Ithis appeal is less than the threshold limit as could be seen from the order passed bythe Commissioner of Income tax, Appeals dated 17.12.2008 whether the tax which hasbeen demanded is Rs.56,29,926/- which is less than Rs.1 crore. Therefore, the revenuecannot pursue the appeal. Accordingly, the appeal stands disposed of on the ground of low tax effect.The substantial questions of law which have been admitted are left open. (T.S. SIVAGNANAM, J.) Pkd/GH. (HIRANMAY BHATTACHARYYA, J.)