Exemption not granted for involving lower than the prescribed minimum tax effect

The Income Tax Appellate Tribunal has dismissed the Revenue's appeal due to a filing delay and the disputed tax addition being below the minimum threshold set by CBDT Circular No. 17/2019. The tribunal considered the delay as a communication gap between departmental authorities, prioritising substantial justice over technicalities. The appeal involved proceedings under sections 147/143(3) of the Income Tax Act.

IN THE INCOME TAX APPELLATE TRIBUNAL “A”
(Virtual Court Hearing), BENCH KOLKATA

BEFORE SHRI P. M. JAGTAP, V.P & SHRI S. S. GODARA, JM
I.T.A No.2147/Kol/2019
Assessment Year: 2008-09)

DCIT, Circle-6(1), Kolkata
(Appellant)
Vs.
M/s. ICA Eduskill Pvt. Ltd.
4th Floor, 27, Netaji Subhas Road, Kol-1. 
(Respondent)
PAN/GIR No.: AABCI0017R

Appellant by : Shri Dhrubajoti Roy, JCIT
Respondent by : Shri Subash Agarwal, Advocate

Date of Hearing : 05/10/2020
Date of Pronouncement : 14/10/2020

O R D E R

Per Shri S. S. Godara:

This Revenue’s appeal for assessment year 2008-09 arises against the Commissioner of Income-tax (Appeals)-7, Kolkata’s order dated 01.05.2019 passed in case No.979/CIT(A)-7/Circle-6(1)/Kol/15-16 involving proceedings u/s 147/143(3) of the Income Tax Act, 1961; (in short ‘the Act’).

Heard both the parties. Case file persued.

2. It emerges at the outset that this Revenue’s appeal suffers from 59 days’ delay in filing. It is pleaded in the condonation petition/affidavit dated 17.09.19 that the relevant file/papers were not available with the concerned authorities. The assessee is equally fair in not contesting all these solemn averments. Hon’ble apex court in Collector, Land Acquisition vs. Mst. Katji & Ors [1987] 167 ITR 0471 (SC) held long back that the cause of substantial justice prevails over all technical aspects. We thus treat this 59 days’ delay in filing as neither intentional nor deliberate but on account of communication gap between different authorities at departmental level. The main appeal is taken up for adjudication on merits therefore.

3. We next notice that the total amount of the disputed addition(s) before us is Rs.31,72,758/- i.e. involving tax effect less than Rs. 50 lacs as per CBDT’s latest Circular No.17/2019 dated 08.08.2019. It is pertinent to reproduce the relevant portion of the said Circular as follows:-

To know more in details find the attachment file