Principal CIT-5, Kolkata v. ABCI Infrastructure Pvt. Ltd - 2020-LL-0204-51

Citation	2020-LL-0204-51
Appellant Name	Principal CIT-5, Kolkata
Respondent Name	ABCI Infrastructure Pvt. Ltd.
Court	HIGH COURT OF CALCUTTA
Relevant Act	Income-tax
Date of Order	04/02/2020
Judgment	View Judgment
Keyword Tags	tax effect
Bot Summary:	The Court :- We make it absolutely clear that the tribunal has only the power and authority to see that the revenue is acting according to the relevant circulars prescribing tax effect on which appeals may be preferred and the exceptions to the general rule. If it is acting according to the circular, then the wisdom of the revenue in taking a decision in terms of a particular clause in the circular is not to be questioned by the tribunal or the assessee. 21/2015 provides situations where appeals may be filed although the tax effect is lower than the prescribed limit. It is only sufficient if in its decision the revenue refers to this paragraph and says that it is desirous of filing an appeal under one of the four exceptions mentioned therein. The correctness or wisdom of such decision is not to be gone into by the assessee or the tribunal. We direct the appellant/Revenue to produce the relevant circulars and the decision of the department before the tribunal and if a decision has been taken by the revenue to prefer the appeal before it, it shall record the same and dispose of the appeal on merits by a reasoned order within four months of communication of the same. We make it absolutely clear that if the requisite decision cannot be produced before the tribunal, it will be at liberty to reaffirm the impugned order.

IN HIGH COURT AT CALCUTTA Special Jurisdiction (Income Tax) ORIGINAL SIDE PRINCIPAL CIT- 5, KOLKATA Versus M/S. ABCI INFRASTRUCTURE PVT. LTD. BEFORE: Hon'ble JUSTICE I. P. MUKERJI Hon'ble JUSTICE MD. NIZAMUDDIN Date : 4th February, 2020. APPEARANCE: Mr. Debasish Choudhury,Adv. Mr. Manabendra Nath Bandyopadhyay,Adv. Mr. Rajarshi Chatterjee,Adv. Court :- We make it absolutely clear that tribunal has only power and authority to see that revenue is acting according to relevant circulars prescribing tax effect on which appeals may be preferred and exceptions to general rule. If it is acting according to circular, then wisdom of revenue in taking decision in terms of particular clause in circular is not to be questioned by tribunal or assessee. Say for example, para 8 of circular no. 21/2015 provides situations where appeals may be filed although tax effect is lower than prescribed limit. It is only sufficient if in its decision revenue refers to this paragraph and says that it is desirous of filing appeal under one of four exceptions mentioned therein. correctness or wisdom of such decision is not to be gone into by assessee or tribunal. In this case, tribunal has erred in trying to investigate into merits of decision of department. 2 In those circumstances, impugned order of tribunal dated 31st August, 2018 is set aside. We direct appellant/Revenue to produce relevant circulars and decision of department before tribunal and if decision has been taken by revenue to prefer appeal before it, it shall record same and dispose of appeal on merits by reasoned order within four months of communication of same. We make it absolutely clear that if requisite decision cannot be produced before tribunal, it will be at liberty to reaffirm impugned order. By consent of parties, this appeal was treated on day s list dispensing with all formalities. appeal (ITAT No. 134 of 2019) and stay application (GA No. 1745 of 2019) are disposed of by this order. (I. P. MUKERJI, J.) (MD. NIZAMUDDIN, J.) S.Chandra Principal CIT-5, Kolkata v. ABCI Infrastructure Pvt. Ltd

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